A U.S. bankruptcy trustee has filed a motion recommending the dismissal of the Chapter 11 bankruptcy cases for Silver Airways and its subsidiary Seaborne Virgin Islands. The motion, filed on Thursday, cites ongoing financial losses and lack of a viable path to recovery as key reasons for recommending dismissal.
The trustee’s motion states that the airline’s assets, valued at approximately $90 million, are fully encumbered by $400 million in secured debt. Additionally, the companies owed $8 million in taxes and $27.7 million to unsecured creditors at the time of the bankruptcy filing.
Mounting Losses
According to the motion, Silver and Seaborne have suffered substantial losses totaling over $32 million since filing for Chapter 11 bankruptcy protection on Dec. 30, 2024. The airlines have maintained negative cash flow since at least February 2025, with losses of $467,000 in February and $1.22 million in just the first two weeks of March.
A key factor in the trustee’s recommendation is the airline’s inability to secure debtor-in-possession financing, which the motion says “clouds any prospect of a reasonable likelihood of rehabilitation.” The trustee also expressed skepticism about the carrier’s financial projections, describing them as “unrealistic and designed to avoid ending any week with a negative cash balance.”
The motion notes that Silver’s fleet has been reduced by half, from 16 aircraft at the time of filing to just seven currently under lease.
The bankruptcy court will consider the trustee’s motion and any responses from Silver and other interested parties with a hearing set for May 7. If the motion is dismissed, Silver and Seaborne would lose bankruptcy protection, potentially exposing them to creditor actions outside of the structured bankruptcy process.
