Almost a week ago, Florida-based turboprop operator Silver Airways ceased operations, months after it filed for Chapter 11 bankruptcy protection. While the company initially claimed it would emerge stronger than ever before, in the end, the carrier was liquidated, and its limited assets were sold to another party at a low cost.
The saddest part of this situation is for employees — not just for the fact that they don’t have a job, but also for the fact that they’re not even being paid all the money they’re owed.
Enilria reports that Silver Airways has just sent out its final paychecks to employees, but it’s not for the amount they were expecting. In a memo attached to the paycheck, employees have been informed that they’re only being paid for 45% of their last pay period. Here’s the memo, which is quite something:
It is expected that you are frustrated and angry with receiving only a partial paycheck today. It was roughly 45% of what was expected and if more receipts come in from recent flying, we will ask the court’s permission to pay additional amounts to our Team Members.
Words cannot express our collective frustration and disappointment. We thought we had found a solution for our company and our Team Members’ future with Wexford after many other failed transactions. It was a transaction that our board and I had hoped would save hundreds of jobs.
Nevertheless, 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. 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).
As a result of Wexford’s actions, the company was left with limited cash. 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.
Cash on hand at the time of the shutdown was used for a partial payroll and June medical insurance coverage.
We have reached out to a number of airlines to ask them to provide preferential treatment of our employees if they have employment vacancies and the response has been encouraging.
Your efforts and hard work are not ignored and are the reason we survived for many years with very limited resources. Thank you and apologies.
