Silver Airways Creditors Demand Payment as Judge Weighs Bankruptcy Dismissal

As principals and creditors of Silver Airways and Seaborne Airlines await a judge's decision on whether to dismiss the pending bankruptcy case, the court will first decide to honor several requests for payment from companies hoping to be reimbursed for services provided. 

On May 7, bankruptcy judge Peter Russin will hear motions for payment from Hillsborough County Aviation Authority (330), the City of Tallahassee (328), Monroe County, Florida (323), and StandardAero Atlantic (324). 

The creditors say that Silver has failed to pay significant debts that were accrued after it filed for bankruptcy in December 2024. Past-due rent for the airline's use of the Tallahassee International Airport stands at over $84,000, while Silver reportedly owes the Key West Airport a similar sum. Meanwhile, debts to the Tampa International Airport currently stand at almost $385,000, and overdue balances from the lease of an airplane engine from StandardAero currently stand at over $1.2 million. The latter creditor is asking the court to compel Silver to immediately pull the leased engine from service and return it to its rightful owner. 

On the same day, Judge Russin will also hear arguments for and against the pending motion to dismiss the matter, which was filed by the trustee of the U.S. Government assigned to the matter. The motion argues that the ailing airlines have no hope of stopping the bleeding from their loss-making operations, and thus there is no point in continuing restructuring proceedings under the Chapter 11 bankruptcy framework.