Ramon Lopez/WASHINGTON DC
Kiwi International Airlines, which was threatened with liquidation after a Florida-based investment firm failed to come through with the expected financing, has managed to secure funding from another source. Isbre Holding, a New York investment group, has placed $5 million of debtor-in-possession financing in escrow for the struggling low-fare US carrier.
Kiwi and its benefactor presented the plan in the federal bankruptcy court on 22 November. Isbre Holding - which owns American Helicopter Service, a charter helicopter operator based in Newark, and also imports bottled water to the USA from Norway - has pledged an additional $15 to $20 million in equity financing for control of the Newark-based airline.
Kiwi officials had been expecting that amount from Wasatch International, which owns the Palm Beach Cruise Lines and the Viking Princess cruise ship. It offered $100,000, but failed to provide the rest of the promised cash.
Kiwi had been talking to Isbre in anticipation of a problem with Wasatch. It continues to talk to another undisclosed investor group regarding additional financing. Recovery Equity Investors, a California-based investment concern which previously paid $4 million for a Kiwi stake, may now lend the struggling airline more cash.
Kiwi, which operates a fleet of Boeing 727-200s, filed for Chapter 11 bankruptcy protection on 30 September and suspended its scheduled-flight operations on 15 October. It continues charter operations. Kiwi had hoped to resume scheduled flights before the end of November, but a new start-up date has yet to be been announced.
Source: Flight International