Silver Airways declared Chapter 11 bankruptcy with hopes of restructuring, stabilizing, and maybe even flying its way out of financial freefall. But at this point, the only thing it seems to be flying toward is liquidation—and fast.
In April, Wexford Capital (via an affiliate) swooped in with a $5.775 million “stalking horse” offer to buy what’s left of Silver. Another Wexford affiliate had already provided $5.5 million in emergency financing just to keep the lights on. The goal was clear: set a low bar for a court-ordered auction and hope someone—anyone—might swoop in with a better deal.
Spoiler: No one did. Source: Orlando Sentinel
The Auction No One Asked For
The auction on June 3 was meant to be a public test of Silver’s market value. But what it really turned out to be was an empty room with no bidders, no interest, and no illusions.
Why hold an auction when the outcome is this obvious? The stalking horse bid wasn’t a starting point—it was a formality, a box to check before rubber-stamping a deal that creditors were never going to be happy with.
There wasn’t a bidding war. There wasn’t even a polite inquiry.
It’s one thing when an airline goes bankrupt and strategic buyers line up to pick the bones. But in Silver’s case, even the vultures stayed away.
“That’s a No From Me, Dawg”
To be fair, Silver Airways attempted to generate interest. According to court filings, the airline’s management reached out to more than 75 potential buyers, with 25 parties signing NDAs and reviewing financials. That included domestic and international airlines, private equity firms, former airline execs, and specialists in distressed assets.
In other words, they didn’t just cold-call Uncle Larry—they went to the usual suspects who actually buy broken airlines.
But despite all that effort? Crickets.
At least eight parties sent written expressions of interest, and a few even considered buying both Silver and Seaborne Airlines. But when it came time to back that up with actual dollars, everyone ghosted.
This wasn’t a competitive bidding process. It was a corporate version of American Idol where every judge looked at the contestant and said:
“That’s a no from me, dawg.”
What Was on the Table?
Argentum’s offer includes the purchase of Silver’s aircraft and related equipment, ground support infrastructure, airport gate leases, maintenance facilities, receivables, and intellectual property. It also includes Seaborne Airlines, Silver’s U.S. Virgin Islands affiliate that operates a route between St. Thomas and St. Croix.
But again, all of this for just $5.8 million.
The Debt Load No One Wants to Inherit
As of April 30, Silver’s total debt stood at $376.5 million, with $37.8 million of that added since January 2025. Not a dime of it would be carried over to the new owner under the proposed sale.
So who’s getting paid? Probably no one.
During a May 7 court hearing, Judge Peter Russin made his thoughts known:
“You’re talking about selling a company for $5.8 million with nearly $400 million in obligations. That could leave multiple creditors hanging.”
“Hanging” is putting it mildly. Try stranded, stiffed, and shoved to the back of the line behind a private equity firm that wants Silver’s assets—but none of its baggage.
The Judge Isn’t Buying It (Literally)
The judge isn’t the only one unconvinced. In April, the bankruptcy trustee openly criticized Silver’s management as overly optimistic and floated liquidation as the more appropriate path forward.
Now, with no other offers and a sale that looks like a giveaway, the court might reject the deal outright.
The bankruptcy code is meant to protect stakeholders, not to facilitate sweetheart asset grabs for pre-arranged buyers while everyone else walks away empty-handed.
Final Descent?
At this point, the writing’s on the wall—and it’s written in bold red ink. Silver Airways has been struggling for years, shrinking its routes and chasing revenue. Now it’s down to one last, underwhelming offer that may not even get approved.
If the judge blocks the deal, Chapter 7 liquidation becomes the next logical step. That would mean a complete shutdown of Silver Airways and its Seaborne Airlines affiliate.
It’s a sad ending for an airline that once had big regional ambitions. But when 25 potential buyers peek behind the curtain and all say “No thanks,” maybe the story’s already over.
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1 comment
I agree with your analysis. I’d think the judge would be disinclined to allow a “sale” to an entity which is also owned by the debtor for pennies on the dollar, with the end result being Silver continuing to chug along essentially the same as it ever has (including essentially under the same ownership structure) while shedding hundreds of millions in debt. The judge has to look out for the interest of creditors. Keeping the business as a going concern is only a factor inasmuch as it is likely to help make creditors whole…which seems unlikely given the US Trustee’s motion.
It’s sad because I liked the quirky airline with its ATR fleet. But I don’t think Silver Airways is long for this world.