No Buyer for Silver Airways in Bankruptcy Auction
Silver Airways tried to find a buyer for its business, but no one bid in its latest bankruptcy auction, The Street reported. This came despite the airline working hard to market itself to potential buyers.
No Bids in Auction
Silver Airways filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Florida on December 30, 2024. The airline was heavily in debt between $100 million and $500 million. The bankruptcy judge ordered the auction to see if anyone wanted to buy the airline or its assets. Silver Airways continued flying thanks to a $5.7 million loan from Argentum, a company affiliated with Wexford Capital. Argentum also placed the opening bid in the auction. But no one else offered, so the auction was canceled.
What’s Next for Silver Airways?
Now the court must decide whether it will allow Argentum to buy the airline with its $5.7 million bid. If the court agrees, Argentum will acquire the airline and its assets. They will pay using a $5.5 million credit bid based on a loan they already made to Silver Airways. That means they can count the money they already borrowed as part of the purchase price.
Silver Airways Is Still Flying, But Struggling
Silver Airways has continued to fly during the bankruptcy process, but the airline has had to reduce its fleet by half. It currently operates eight ATR turboprop aircraft, with an average age of just over seven years. It serves Florida and the Caribbean, flying to destinations such as Fort Lauderdale, Key West, Tampa, San Juan, St. Thomas and St. Croix.
Over the Memorial Day weekend, a mechanical problem grounded some of its flights between Florida and the Caribbean, adding $1 million to its debt, WLRN reported.
Trustee Believes Silver Airways Can’t Recover
In April 2025, the trustee assigned to manage Silver Airways’ bankruptcy asked the court to shut down and liquidate the airline. The trustee told the court that Silver Airways had little chance of fixing its financial problems. The trustee said the airline’s plans to make money again were unrealistic, especially since it has fewer planes and fewer routes. That’s why the trustee asked the court to dismiss the case or convert it to Chapter 7 bankruptcy. Chapter 7 means the airline would shut down and sell everything to pay off its debts.
History of Silver Airways
Silver Airways was launched in 2011 and is based in Hollywood, Florida. It flies regional routes connecting Florida, the Bahamas, and the Caribbean. Before its financial troubles, it had more planes and was flying more routes. It had hoped to grow its business by adding planes and even planned to work with Amazon to fly cargo, but that deal fell through.
Over time, the airline fell behind on taxes and other bills. It owes more than $2 million to the IRS and owes money to the airport. At one point, Fort Lauderdale-Hollywood International Airport even threatened to evict it for non-payment of rent. The financial problems pushed the airline into bankruptcy.
Fleet and Flight Cuts
Silver Airways previously had 14 ATR planes and flew about 100 flights a day to Florida and the Caribbean. That’s down to eight planes now. Earlier this year, it had to return several planes to their lessors. According to Reddit posts from travelers and some airline employees, some flights from Orlando were also canceled without notice.
One Employee Said:
“They just lost seven planes that they had to return to the leasing company. I work for them and found out last night.”
Another added:
“They’re basically a Caribbean airline now flying US-registered aircraft.”
The changes have hurt the airline’s ability to make money and made life difficult for passengers.
Passengers And Employees Are Facing Problems
Passengers have faced flight cancellations, delays and poor communication. One passenger said they were stranded in Key West and could not get a refund. Another passenger said they had to book a separate flight home from the Bahamas after Silver canceled their flight without notice. Employees were also in shock. Some learned at the last minute that many of the planes were being taken by leasing companies.
What Could Happen Next?
Silver Airways has reached a turning point. A judge will decide whether Argentum will buy the airline for $5.7 million. If that happens, Argentum will take it over and decide what to do with the airline. But the trustee still believes the airline cannot solve its financial problems and should shut down completely.
For now, Silver Airways continues to fly, but with each day of operation, more costs and debt are added. Creditors are waiting to see if they will get their money back. Passengers are wondering if their flights will be canceled again.
The future of Silver Airways now depends on a court decision. Will the airline continue to fly under new ownership, or will it close and disappear?
