Silver Airways blamed the shortfall on the investment firm that purchased its assets.
A Silver Airways ATR aircraft (Photo: Shutterstock | HMBSoFL Photography)
Former employees of now-shuttered Silver Airways have received only part of their final paychecks.
In a message to workers obtained and first reported by Enilria, Silver’s management acknowledged the shortfall and blamed investment firm Wexford Capital, which purchased the bankrupt airline’s assets. Silver had hoped the deal would “save hundreds of jobs,” but this week Wexford opted to shut down service.
“Despite statements by Wexford’s representatives in court that Wexford would pay for Silver’s operations after close and work out arrangements with airports and aircraft lessors, this did not occur,” the message said. “Wexford, with knowledge that its actions would shutter the company, walked away at the last minute. Wexford determined to purchase only the assets of the company and not the going concern (operations and employees).”
A Silver Airways ATR 42 600 on display at the Farnborough Airshow. (Photo: AirlineGeeks | Fabian Behr)
“As a result of Wexford’s actions, the company was left with limited cash,” the statement continued. “We did not know or expect Wexford was walking away until Tuesday, and we tried everything possible to bring them back. We exhausted all efforts to try and salvage the company.”
Silver’s remaining cash on hand was used for partial payroll and the continuation of medical insurance coverage for June. If more money comes in from recent flights, the airline will ask the court handling its bankruptcy to send another payment to laid off staff.
Silver filed for bankruptcy protection in late December and expected to emerge from the process within the first quarter of 2025. This did not happen, and on Wednesday Silver ceased operations, blindsiding employees and passengers.
Silver said it reached out to other airlines to ask them to provide “preferential treatment” for its former employees if they have open positions.
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