Gulfstream Chapter 11
11-04-2010, 01:28 PM
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Gulfstream Chapter 11
Gulfstream International files for Chapter 11
On Thursday November 4, 2010, 4:51 pm
FORT LAUDERDALE, Fla. (AP) -- Gulfstream International Group Inc., which operates a regional feeder airline and an aviation training school, said on Thursday that it has filed for Chapter 11 bankruptcy protection.
The company said its flights would continue as scheduled. It operates 23 Beech propeller planes that carry 19 passengers. The flights generally connect smaller towns to larger airports, many of them for United Continental Holdings Inc.
Gulfstream said the filing was prompted by borrowing in recent years "to cope with consistently high fuel costs and the economic impact of declining traffic," which made it difficult to pay its debts. CEO David Hackett said in a prepared statement that it has received "strong interest from a number of investment sources" but they all wanted the company to restructure its debt before they invest.
In June 2009 the Federal Aviation Administration said it would seek a $1.3 million civil penalty against Gulfstream's airline, saying it violated regulations on how many hours pilots and dispatchers can work, and improperly maintained equipment.
The airline said at the time that the problem was confusing records and not broken rules. It settled with the FAA for $550,000 in July. Gulfstream spokesman Bruce Hicks said the fine was not a factor in the bankruptcy filing.
Gulfstream also came under scrutiny last year because the pilot of a Colgan Air flight that crashed into a house in Buffalo in February 2009 had trained at Gulfstream's academy and flown for Gulfstream's airline before joining Colgan.
The bankruptcy filing in the Southern District of Florida covers the parent company as well as the airline and Gulfstream Training Academy Inc. The company said it employs about 600 people, and does not expect any layoffs because of the filing.
Gulfstream shares lost most of their remaining value after the bankruptcy filing. After closing on Wednesday at 55 cents, they fell 39 cents to close at 16 cents.
On Thursday November 4, 2010, 4:51 pm
FORT LAUDERDALE, Fla. (AP) -- Gulfstream International Group Inc., which operates a regional feeder airline and an aviation training school, said on Thursday that it has filed for Chapter 11 bankruptcy protection.
The company said its flights would continue as scheduled. It operates 23 Beech propeller planes that carry 19 passengers. The flights generally connect smaller towns to larger airports, many of them for United Continental Holdings Inc.
Gulfstream said the filing was prompted by borrowing in recent years "to cope with consistently high fuel costs and the economic impact of declining traffic," which made it difficult to pay its debts. CEO David Hackett said in a prepared statement that it has received "strong interest from a number of investment sources" but they all wanted the company to restructure its debt before they invest.
In June 2009 the Federal Aviation Administration said it would seek a $1.3 million civil penalty against Gulfstream's airline, saying it violated regulations on how many hours pilots and dispatchers can work, and improperly maintained equipment.
The airline said at the time that the problem was confusing records and not broken rules. It settled with the FAA for $550,000 in July. Gulfstream spokesman Bruce Hicks said the fine was not a factor in the bankruptcy filing.
Gulfstream also came under scrutiny last year because the pilot of a Colgan Air flight that crashed into a house in Buffalo in February 2009 had trained at Gulfstream's academy and flown for Gulfstream's airline before joining Colgan.
The bankruptcy filing in the Southern District of Florida covers the parent company as well as the airline and Gulfstream Training Academy Inc. The company said it employs about 600 people, and does not expect any layoffs because of the filing.
Gulfstream shares lost most of their remaining value after the bankruptcy filing. After closing on Wednesday at 55 cents, they fell 39 cents to close at 16 cents.
Last edited by Jughead; 11-04-2010 at 01:42 PM.
11-05-2010, 06:51 AM
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