Eos Airlines ceases Operations

Eos Airlines, the premium class New York to London carrier, has filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code. The petition was filed in the U.S. Bankruptcy Court in the Southern District of New York.

The airline immediately implemented a reduction in its workforce, eliminating the positions of most of its employees, and ceased operations entirely April 27, 2008.

Jack Williams, Eos’ CEO, said, “After overcoming today’s extremely challenging economic and credit environment to negotiate terms for a round of financing, it is regrettable that we were forced to take this action. We had been clear since closing on our last round of financing that we would need additional capital. As difficult as it is to raise funds in the current environment, investors believe in our business model and we were on the verge of success.

“Unfortunately, just as we were working toward closing on an investment that would have carried us to corporate profitability in 2009, some issues arose that we could not overcome. It is regrettable that, even though investors continue to be enthusiastic about our business model, and even though we had a term sheet in hand, we were unable to close on the financing we needed. That leaves us with insufficient cash on hand to continue operations.”

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