Global Aviation Holdings Inc. filed for bankruptcy, citing the U.S. military’s decision to curtail transportation of cargo.
Global Aviation, the biggest commercial provider of charter air services to the U.S. military, listed assets and liabilities of as much as $1 billion in its Chapter 11 filing in bankruptcy court in Wilmington, Delaware.
The company, based in Peachtree City, Georgia, plans to cut its workforce by about 16 percent in the next three months, according to a statement distributed by PRNewswire today. Global Aviation, the parent of World Airways and North American Airlines, employs 1,200 people, according to its website.
“The continued worldwide downturn in commercial freight markets coupled with the military’s decision to immediately curtail its cargo expansion flying has made it necessary for us to undertake this court-supervised reorganization,” Chief Executive Officer John Graber said in the statement.
Global Aviation plans to keep operating during the reorganization and has obtained financing from its lenders to support the operations, the company said.
The case is In re: Global Aviation Holdings Inc. 13-12945. U.S. Bankruptcy Court District of Delaware (Wilmington).
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