The long-term fate of South Florida-based Silver Airways, known for its pink turbo-prop airplanes and flights to popular statewide and island destinations, has taken a favorable turn as a financial firm stepped up with an initial $5.775 million bid that would allow the troubled carrier to exit bankruptcy.
The firm is KIA II LLC, an affiliate of Wexford Capital of Connecticut and West Palm Beach, which has a long track record of investing and reorganizing airlines. It’s the same group that provided critical financing last month for Silver to keep operating.
Silver submitted an emergency motion late Friday with the U.S. Bankruptcy Court in Fort Lauderdale to approve the bidding process and naming the Wexford affiliate as a “stalking horse” bidder whose offer will serve as a floor price for others who may want to bid before a proposed May 23 deadline.
“Silver … has determined that the most effective way to maximize the value of its estate for the benefit of its constituents was to seek bankruptcy protection and sell its business and assets through a Sale Transaction … ” the motion says. The bid has the support of Silver’s main prepetition lenders, Brigade Agency Services LLC and Argent Funding, LLC.
“In order to yield top dollar for the Assets, maintain the support of Silver’s passengers and vendors, and maintain Silver’s employee base, it is in the best interest of Silver and its estate to move expeditiously with a sale process,” the airline said.
The sale does not include its Seaborne Virgin Islands Inc. affiliate.
Silver’s management, according to the filing, mounted “an extensive marketing effort” to sell its assets before the airline landed in bankruptcy court. At least 75 potential purchasers were contacted, with 20 taking close looks at the company to explore a possible purchase.
The regional airline, which filed for Chapter 11 protection Dec. 30 along with its Seaborne. affiliate, has struggled through COVID-19, hurricanes, cash shortages and stiff industry competition. When it entered U.S. Bankruptcy Court in Fort Lauderdale, it had roughly $500 million in debts, a reputation as a slow payer and a hefty load of complaints from passengers who vented their frustrations on online travel sites.
But in an interview with the South Florida Sun Sentinel last week before the bid was publicized, Steven Rossum, the airline’s chief executive, recalled the day in 2020 when the Wall Street Journal affixed a target on his airline’s back. As the COVID pandemic savaged the nation’s economy and the aviation industry, the newspaper predicted that Silver was the next of the nation’s regional airlines at risk to fail.
Silver, though, flew on with the help of $31 million in federal government assistance and, later, a contract to fly packages for Amazon in the Southwest. But neither the cash nor the Amazon work lasted long, and the airline has struggled to keep aloft ever since.
“We’re still here; we’re still flying,” Rossum said before the bid was filed. ”I think there is a strong likelihood there will be a Silver Airways in the future.”
From the standpoint of public need, there is a case for continuing to operate in a state with a population of 23 million, as well as leisure travel routes to and from the Bahamas and Caribbean.
Regional carriers such as Silver, no matter how large or small, are key components of the nation’s commercial aviation system. The Regional Airline Association, an industry trade group based in Washington, D.C., notes that smaller carriers “provide critical links connecting communities throughout North America to the national and international air transport networks,” according to the group’s website.
“Flights with fewer than 100 seats feature major airline branding and are operated by regional airline partners under code-sharing agreements,” the association notes.
Silver, which is not an association member, maintains important “code sharing” partnerships with JetBlue Airways and United Airlines, arrangements designed to move passengers quickly from bigger cities served by the major airlines to smaller locations served by Silver. They are commercial relationships that add value to the Silver estate, among other assets, Rossum said.
“We have unique commercial relationships,” he said. “These relationships have taken a long time to foster. United is a significant portion of our business. They are great customers. United and JetBlue have been there for the entirety of the bankruptcy.”
Post-COVID setbacks
The airline, though, has struggled to establish consistent sources of revenue, largely because of external economic and competitive factors.
“We know how to run a decent airline,” he said, when asked about the online passenger complaints. “There are always online critics. Our operations have been phenomenal and I watch it every day. We have all of the infrastructure of a United Airlines or American Airlines or a JetBlue.”
Rossum recalled the airline relied heavily on the Amazon contract to pull it through the pandemic’s downdraft. Under the deal, five of Silver’s planes — repainted white with the blue letters “Prime Air” on the fuselage — flew packages out of Fort Worth, Texas, to cities such as Albuquerque, New Mexico; Des Moines, Iowa; and Wichita, Kansas.
But the agreement was short-lived. Amazon terminated the deal in July 2023 after just two years, instantly wiping out $20 million, or 20%, of Silver’s annual revenue, Rossum said.
The airline turned to flying other passenger routes — Jacksonville to New Orleans, for example, which Rossum said “did really well” until bigger carriers with jet planes muscled their way in.
“Breeze (Airlines) in particular started picking off a number of routes we were in,” he said. Ultra-low-cost carriers such as Spirit and Frontier Airlines also flooded the zone.
Later, Silver management invested heavily in Palm Beach County, but the endeavor flopped. “We thought Palm Beach was going to be great and it didn’t work out,” Rossum said.
Other factors: As bigger airlines recovered from the COVID downturn, they poached pilots from smaller carriers such as Silver, which lacked the cash to pay higher salaries. Rossum also said supply did not keep pace with the airline’s need for spare parts.
Silver decided to return to its traditional intra-Florida routes and flights to and from the Bahamian and Caribbean islands.
“Things started getting better,” he said, “but our cash reserves were dwindling.”
As losses mounted, the airline’s faithful lender, Brigade Agency Services, said it would not continue financing the airline past 2024.
“They were great. They were helpful. They were patient,” Rossum recalled. “There came a point where they weren’t going to fund (the operation) anymore.”
Rossum acknowledged Silver has been “slow paying people,” which did not go unnoticed by airport authorities that went long stretches without being paid for leases and fees. The Broward County Aviation Department went to the brink of evicting the carrier from the international airport in 2023, but Silver entered into a payment plan that lasted into 2024. The airline continues to use the airport, operating out of Terminal 1 next to one of its code sharing partners, United Airlines..
Rossum said he searched for financial help after Brigade pulled the plug, but did not succeed. Silver and Seaborne filed for bankruptcy protection on Dec. 30, with the goal of restructuring the finances by the first quarter of this year.
But the quarter turned into a rough three months — a Dutch plane lessor pulled back three aircraft, forcing the airline to drop service to Orlando International Airport. The destination, Rossum said, is an expensive place for a commuter airline to operate.
And Brightline, the higher speed train service between Miami and Orlando, siphoned off business.
“Brightline hurt us,” Rossum said. “Their train goes into the airport with significant numbers of frequencies a day.”
U.S. Trustee worried
Finally on April 14, Silver signed a financing agreement with a new lender, Wexford Capital of West Palm Beach and Greenwich, Connecticut. Under the deal, Wexford agreed to provide what is known as “debtor-in-possession” financing so the airline could fund its day-to-day operations.
Since late December, Silver has relied on Brigade, one of its largest secured creditors, to allow it to use cash generated by the business. Since the case began, U.S. Bankruptcy Judge Peter Russin approved nine requests to access the funds.
The judge also quickly approved the lending deal, noting the sense of urgency and need for more time for Silver to find bidders, conduct an auction and file a reorganization plan that is acceptable to creditors.
In the meantime, Rossum said money from Wexford’s funding — an initial tranche of $3 million — is headed to airports and other creditors that have gone to court to get paid for post-petition services. “We’re catching up with all of the airport authorities,” he said. “We expect within the next couple of weeks, we’ll be caught up with all of them.”
Nonetheless, the U.S. Trustee’s Office, whose role it is to safeguard the rights of creditors and debtors, is pursuing a motion in court to dismiss the case and possibly liquidate the airline. Given the arrival of Wexford Capital, the office reportedly is willing to delay a hearing on the motion until the summer.
The reasoning: Silver lacks the resources to sustain itself and grow, according to an early April filing that called Silver’s financial outlook “fanciful.”
Rossum declined to comment.
Bidding window
According to court filings, would-be bidders will have most of the month of May to check out the airline’s operation and submit an offer.
Rossum strongly asserted last week that Silver is a viable turnkey operation despite its reduced fleet, route network and fewer employees.
Thus far, no potential bidders have emerged publicly except for Wexford, which has the right to submit an offer as a result of its debtor-in-possession loan, according to the court file.
Wexford, which has extensive experience in aviation investing and turnarounds, did not immediately respond to an emailed request for comment. Rossum declined to discuss the firm’s plans.
On Thursday, a report emerged online that Silver had agreed to merge with another South Florida-based commuter operation called Southern Express Airways. But representatives of both carriers told the South Florida Sun Sentinel that the report is false. The bankruptcy court has no record of any pending transaction.
In the meantime, Rossum vows the airline will be operating for whomever steps up with an acceptable offer. The company now serves five Florida cities — Fort Lauderdale, Key West, Tampa, Tallahassee and Pensacola — with eight aircraft, down from a fleet of 14. It also serves 11 island destinations in the Bahamas and Caribbean.
Rossum credits the continuation of operations in large part to the determination of his employees, whose ranks have thinned from 608 to 448 as of March 31.
“I have been employed at eight airlines, and the employees at Silver are the most incredible group of people I have ever worked with,” he said.
“Everybody at Silver plays to the whistle,” he added. “There is no quit in anybody here.”
Key dates from loan to buyout
April 14: Silver signs financing agreement with an affiliate of Wexford Capital of West Palm Beach and Connecticut for up to $5.5 million, with an initial $3 million to be used for operations and post-petition payments.
April 18: U.S. District Judge Peter Russin approves interim order to allow lending agreement.
April 24: Judge grants deadline extensions for Silver to file a reorganization plan (now June 28) and to solicit creditor approvals (now Aug. 27).
May 2: Wexford affiliate submits $5.775 million “stalking horse” bid.
May 7: proposed hearing to approve bidding process.
May 23: Bidding deadline
May 29: Deadline for holding an auction if necessary.
Timeline: From Gulfstream to Silver
2010: Victory Capital Partners acquires Gulfstream out of bankruptcy.
2016: Versa Capital of Philadelphia acquires Silver.
2017: Steven Rossum takes over as CEO. Carrier adopts plan to convert and grow fleet from older Saab aircraft to up to 20 French-made ATR turboprops.
2018: Silver acquires Seaborne Airlines of Puerto Rico out of bankruptcy. The carrier links St. Croix and St. Thomas in the U.S. Virgin Islands.
2020: Faced with cash shortage, Silver receives $31 million in federal COVID assistance.
2022: Silver enters into contract to fly packages for Amazon while continuing passenger service in Florida, the Bahamas and the Caribbean.
2023: Amazon cancels contract. Silver struggles to find routes that are profitable.
2024: Silver re-emphasizes traditional Florida and island routes, but cash dwindles, losses mount and chief lender halts funding. Management places both Silver and Seaborne in Chapter 11 bankruptcy on Dec. 30.
2025: After scaling back, the airline prepares to sell assets to the highest bidder.
Sources: Silver Airways, U.S. Bankruptcy Court records
Originally Published: May 5, 2025 at 6:10 AM EDT
