Sky King secures DIP financing, fined for public charter violations - ch-aviation.ch


Sky King secures DIP financing, fined for public charter violations

09FEB2013

Sky King (5K, Lakeland Linder Regional (LAL)) has announced that it has secured Debtor in Possession from a group of investors headed by aviation entrepreneur Daniel Carson allowing it to continue restructuring its operations under Chapter 11 bankruptcy protection. Sky King currently operates four B737-400s on charter services and had filed for bankruptcy protection back on September 28, 2012 blaming the earlier bankruptcy of its customer Direct Air (D1, Myrtle Beach International (MYR)) as one of the reasons for its financial difficulties. The US Department of Transportation has now also fined Sky King $500,000 USD for the violation of public charter regulations related to the bankruptcy of Direct Air where several operators that have already been fined like Sky King had continued to operate charter flights for Direct Air despite non-payment and then left passengers stranded following Direct Air's bankruptcy.