Western Global Airlines has filed for bankruptcy with a plan to cut its debt after the employee-owned cargo carrier faltered because of headwinds including the weakening global economy and higher costs, WSJ Pro Bankruptcy reported. The Estero, Fla.-based company yesterday filed for chapter 11 in the U.S. Bankruptcy Court in Wilmington, Del., and said it has a proposed restructuring deal in hand with holders of 85% of its 2025 senior unsecured notes that includes cutting its debt by $450 million. The company’s liabilities include $560 million in loans, a credit facility and notes, according to a sworn declaration by co-Chief Restructuring Officer Robert Del Genio. Western, which was founded in 2013, has 19 wide-body aircraft and provides services on six continents to governments and commercial customers that include the U.S. Defense Department, the U.S. Postal Service and UPS, according to court records and its website. The company has said that it was profitable until last year. It cited the lingering effect of the pandemic in China as another reason for its financial troubles. In June, Fitch Ratings, S&P Global and Moody’s Investors Service said they were withdrawing the company’s ratings due to a lack of information. Later that month, founder and Chief Executive Jim Neff bought the company’s $115 million of outstanding senior debt for $45 million.
