Silver Airways Designates Stalking Horse Bidder in Bankruptcy Case

Silver Airways, which filed for Chapter 11 bankruptcy protection in December, has designated Argentum Acquisition Co. LLC as a stalking horse bidder for a sum of $5.775 million, according to filings this week in the U.S. Bankruptcy Court for the Southern District of Florida.

The deal, which would require court approval, does not include Silver’s subsidiary, Seaborne Airlines, according to the 99-page asset purchase agreement filed Tuesday by Silver’s attorneys Brian P. Hall and Michael F. Holbein. However, it contains a clause that “in the event that no Qualified Bid … is submitted or received at the Auction for the assets of Seaborne,” the Argentum deal will be interpreted to include the assets of both airlines.

The move comes after financial firm KIA II LLC — an affiliate of Argentum and Wexford Capital of Connecticut and West Palm Beach in Florida — offered an initial $5.775 million in financing on May 2 to allow Silver to exit bankruptcy, which also set the floor for others who wish to bid on the troubled airline before a proposed May 23 deadline. KIA also provided Silver with $5.5 million last month so it could continue operating, according to court documents.

Argentum’s stalking horse bid comes after U.S. Trustee Mary Ida Townson filed a motion April 10 to dismiss the case because she felt there was little chance the airlines would succeed.