Silver Airways Fails to Attract Buyers in Bankruptcy Auction

Hollywood, Florida — Silver Airways recently faced a bankruptcy auction, but no buyers emerged, despite extensive marketing efforts targeted at potential investors.

The airline filed for Chapter 11 bankruptcy on December 30, 2024, and is estimated to carry between $100 million and $500 million in debt. A U.S. bankruptcy judge mandated the auction last week, yet interest remained low.

Silver Airways continued operations thanks to a $5.7 million loan from Argentum, an affiliate of Wexford Capital, which enabled them to participate in the auction. This amount served as a baseline offer, known as the “stalking horse” bid, for any incoming bids. Argentum’s offer includes a credit bid of $5.5 million based on its previous loan.

Despite the financial troubles, the airline has maintained operations, albeit with a fleet reduction of approximately 50% recently. During Memorial Day weekend, Silver Airways accrued an additional $1 million in debt due to mechanical issues affecting flights between Florida and the Caribbean.

In April 2025, a trustee overseeing the airline’s bankruptcy stated that liquidation might be the most viable option, citing bleak financial recovery prospects in a report submitted to the U.S. Bankruptcy Court for the Southern District of Florida.

The report expressed doubt regarding the airline’s capacity to restore positive cash flow and recommended considering a shift to Chapter 7 bankruptcy, which focuses on liquidation rather than restructuring. Ascend, a financial advisory firm, pointed out significant ongoing losses, compounded by the airline’s failure to secure operating financing.

The trustee mentioned, “There is a substantial and ongoing loss to the estate, as demonstrated by the Debtors’ continued negative profits and cash flow.” They also emphasized unrealistic financial projections that overlooked operational realities.

As of now, the bankruptcy court is set to review Argentum’s bid, while Silver Airways struggles with its considerable financial challenges.