Global Aviation files for bankruptcy

Global Aviation, a private company that charter flights for military members, filed for Chapter 11 bankruptcy protection.

Global Peachtree, a Georgia based company, generated 82 percent of its income from transporting troops and cargo. The recent military budget cuts have had an effect on other defense contractors like Lockheed Martin Corp.

President Obama withdrew troops from Iraq last year and has called for a reduction in troops stationed in Afghanistan. The Pentagon has been forced to cut billions from its budget.

In their bankruptcy filing Global listed their assets at $589.8 million with debts totaling $493.2 million, according to Bloomberg News.

Bloomberg also stated that Standard and Poor’s cut Global’s credit in December, stating they were “facing a liquidity squeeze.”

Under Chapter 11 Global will continue operations while they continue to restructure. Eight Global affiliates also filed for bankruptcy.

Global is the parent company of North American Airways Inc. and Global Airways Inc. They lease the 29 planes in their fleet.

 Global has 2,000 employees and also provides chartered flights for political campaigns, professional sports and concert tours.

Bankruptcy attorneys can offer a troubled business several options for relieving their overburdening debt. After evaluating a company’s finances a bankruptcy lawyer will know if the company can continue operations while they settle with creditors.

In some circumstances a bankruptcy attorney may be able to reduce or eliminate the amount of debt owed to creditors and oversee liquidation of assets.