Reuters: Bankruptcy News: UPDATE 1-Southern Air files for bankruptcy protection

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UPDATE 1-Southern Air files for bankruptcy protection Sep 28th 2012, 09:29 Fri Sep 28, 2012 5:29am EDT Sept 28 (Reuters) - U.S. cargo airline Southern Air Inc has applied for Chapter 11 bankruptcy protection, a court filing on Friday showed, as the company experienced cash shortages because of its deteriorating financial condition. Southern Air's parent, Southern Air Holdings, said in a filing that as the financial situation continued to deteriorate "it became evident that secured debt and certain lease obligations must be restructured to address the situation." Parent Southern Air Holdings has also filed for Chapter 11 bankruptcy protection. For the 12 months ended July 31 2012, Southern Air clocked revenue of about $428.2 million and a net loss of $159.8 million. And on that date, the company had assets of about $206.9 million and its liabilities totaled about $486.5 million. As of the petition date, the company employed about 611 full time employees, according to the court filing. "The debtors quickly realized that an out-of-court restructuring was not feasible due to their rapidly deteriorating liquidity position and determined that the best way to protect the interests of all stakeholders and preserve the value of their enterprise as a going-concern would be the commencement of a case under the Bankruptcy Code," the company said in the filing. Southern Air operates a fleet of 11 Boeing aircraft, comprising four 777s, four 747-400s and three 747-200s. The case is Southern Air Inc, Case No. 12-12692 and 12-12690, U.S. Bankruptcy Court, District of Delaware. Link this Share this Digg this Email Reprints

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