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Dynamic gets court's approval for another round of funding

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Dynamic gets court's approval for another round of funding

Unread post by bimjim » Tue Nov 07, 2017

http://www.journalnow.com/business/bank ... ec761.html

Bankrupt High Point charter airline gets court's approval for another round of funding
Richard Craver Winston-Salem Journal
6 November, 2017

A federal bankruptcy judge has approved Dynamic International Airways being eligible to receive an additional $2.5 million in funding from its debtor-in-possession lender.

The High Point charter airline filed for Chapter 11 bankruptcy protection July 19.

It has since eliminated at least 60 of 192 jobs, but announced plans to add eight pilots and 22 flight attendants as part of expanding services through a new flight strategy that began in September.

The lender already has provided Dynamic with $3.81 million in funding since the bankruptcy filing. Of the additional funding, $1.5 million has been made as of Friday and the other $1 million will be in December — both at a 6 percent interest rate.

The lender also has expressed a willingness to provide post-bankruptcy financing to Dynamic.

The lender and Dynamic also have reached an agreement on Dynamic’s short-term budget.

Dynamic told the court that without the latest round of funding, it “would not have sufficient working capital and financing to carry on the management of its assets and liabilities.”

In a Sept. 19 filing, Dynamic reported it had a new chief executive in Ray Lawlor, who has over 30 years of industry experience. He’s also senior vice president of cargo sales and marketing for Swift Air LLC.

Dynamic reported at that time trimming its customer liability debt from $7.98 million to $1.96 million. It projected reducing the debt to $323,659 by mid-October.

At the time of the bankruptcy filing, Dynamic’s fleet featured six Boeing 767s serving routes that include New York and Ontario, Calif. International service is to Georgetown, Guyana; Guayaquil, Ecuador; Saipan in Northern Mariana Islands; and Changchun and Nanchang, China. The aircraft can carry 235 passengers using 21 lie-flat business-class seats and 214 economy-class seats.

The airline has ended the Ecuador service because of permitting issue with the Ecuadorian government. It planned to reduce its service to Guyana from five flights weekly to just one in early October.

Dynamics’ focus will be on an aircraft, crew, maintenance and insurance strategy with business from a third-party vendor that sells flight tickets.

An ACMI carrier receives a flat rate per flight hour. Dynamic said it has agreed to one ACMI contract with Swift Travel Services for flights between Port Au Prince, Haiti, and Santiago, Chile. It is negotiating for a second such contract for flights from Miami to Havana and Santa Clara, Cuba.

Dynamic lists between 200 and 999 creditors, assets between $10 million and $50 million, and liabilities between $50 million and $100 million. The company projects funds will be available for distribution to unsecured creditors.

Dynamic’s largest unsecured creditor is Air India Inc. at $10.5 million from another arbitration award that Dynamic disputes. B.K.P. Enterprises & Expim International of Greensboro, was awarded a combined $3.49 million arbitration judgment in December that Dynamic also disputes.

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