Gulfstream International Group
Gulfstream airline goes into bankruptcy
Florida's Gulfstream International Group announced that it has filed for Chapter 11 on Thursday to restructure its debt and secure long-term financing. The carrier said that filing would not affect its 150 daily flights.
Reuters reports that the company said the filing would not affect its 600 employees and it would honor all tickets.
It said it would use the bankruptcy to clear the way for a fresh capital infusion.
"Gulfstream received strong interest from a number of investment sources; however, all of them noted the need to restructure the balance sheet through Chapter 11 prior to making those investments," the company said in a statement.
According to Reuters, the company had arranged a $5 million debtor-in-possession loan to fund its operations while in bankruptcy.
The company operates 23 aircraft, each with seating for 19 passengers.
For the first six months of 2010, the company had revenue of $46.3 million, down from $47.3 million a year ago, according to a regulatory filing.
Over the same period, fuel costs rose about 22 percent, according a regulatory filing.