PMC Aviation has filed a motion with the North Carolina Middle District Court claiming that Dynamic International Airways (2D, Greensboro) is unlikely to ever recover from its mounting debts. Dynamic has been under Chapter 11 protection since July 2017, following the loss of a USD10 million suit with Air India (AI, Mumbai Int’l).
The Winston-Salem Journal reports that PMC is owed USD1.19 million by Dynamic. PMC claims that Dynamic has misrepresented its financial position and is suffering millions of dollars in losses. “The losses are stripping the estate of any meaningful assets to be distributed to the non-insider unsecured creditors,” PMC says. “There is no reasonable likelihood of rehabilitation.”
However, PMC’s motion is being opposed by another creditor, New York-based cargo carrier Worldwide Flight Services, which is concerned that a move to Chapter 7 liquidation would jeopardise Dynamic’s operational agreement with Worldwide.
Dynamic has maintained operations while under Chapter 11, in the hope that it will continue to generate revenue while it restructures. The North Carolina-based carrier currently offers passenger flights from New York JFK to Georgetown Cheddi Jagan, Guyana, and Guayaquil, Ecuador. Flights to Caracas Simón Bolivar were suspended earlier this year. Its fleet entails three active B767-300(ER)s, with two B767-200s and one B767-200(ER) currently parked.