GLO Airlines Seeks Bankruptcy Protection
On Sunday, FlyGLO LLC filed a voluntary petition for bankruptcy in federal court in New Orleans, listing assets and liabilities of between $10 million and $50 million, with up to 49 creditors.
According to court papers, GLO’s largest unsecured creditor is GE Engine Services, of Ohio, which is owed nearly $980,000. (source The Advocate)
In a statement Monday, Jordan Mitchell, a GLO spokesman, blamed the reorganization on the airline’s dispute with Corporate Flight Management. He said GLO was working toward “a solution that will get us back flying a full schedule.” (source AL.com)
“After raising serious concerns over its performance and business practices, rather than find solutions, the air carrier unilaterally terminated its contract to operate GLO’s program,” the company said. “This entirely unjustified action has put GLO’s operations and the financial health of many of GLO’s partners at risk.”
“We plan to offer our full schedule between now and the 27th,” he told AL.com. “We are hopeful to have more information for you tomorrow while we continue to move towards a solution that will get us back flying a full schedule just as soon as practicable.”
Trey Fayard, GLO Founder & CEO, said they are taking this step now “because we value our customers too much to provide inferior service.”
“It was a difficult decision, but a necessary one to protect everyone involved,” he said. “We look forward to promptly and successfully emerging from reorganization in the near future.”