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Gemini Air Cargo Files Chapter 11
Gemini Air Cargo on Wednesday filed for protection under Chapter 11 of the U.S. Bankruptcy Code.
The Dulles, Va.-based ACMI airline will continue operating as usual, said spokesman George Gonzalez. To fund continuing operations, the company secured a loan commitment of up to $14 million from its existing senior lender. The court is expected to rule Friday on the application for bankruptcy.
The filing comes as other airlines, only recently emerged from their own bankruptcies, are facing soft demand with major cutbacks. United, Continental, Delta and American Airlines all cut capacity by at least 10 percent within the last two months.
Record-shattering fuel prices coupled with revenue shortfalls in the past year drove the decision at Gemini, said Gonzalez in a message to employees. With demand for the company's DC10s diminishing, Gemini is cutting back use of those planes and reducing the number of employees. Details of how many of its more than 400 jobs will be lost were not available.
During the bankruptcy, Gemini will be seeking investors. Bayside Capital Investments became the chief investor when the company emerged from bankruptcy reorganization in a debt restructuring in August 2006.
