Updated at: 11/12/2013 9:35 AM
By RANDALL CHASE
(AP) WILMINGTON, Del. - Global Aviation Holdings Inc., the largest provider of private airlift services to the military, has filed for bankruptcy protection in Delaware, citing the cancellation of missions.
Global Aviation, based in Peachtree City, Ga., listed up to $1 billion in both assets and liabilities in its Chapter 11 filing Tuesday.
The company, which has about 1,040 employees, has obtained bankruptcy financing from its first-lien secured lenders and will continue operations during the bankruptcy, but said it will cut about 16 percent of its workforce.
In its filing, the company says Air Mobility Command’s decision to cancel certain flying missions beginning Dec. 1 reduced its planned revenue for 2013 by approximately $13 million and projected 2014 revenue by about $54 million, and created significant overcapacity in the military charter cargo business.
(Copyright 2013 by The Associated Press. All Rights Reserved.)