FLOAT Alaska LLC, the parent of New Pacific Airlines, sought Chapter 11 bankruptcy protection in Delaware on Monday, reporting roughly $65.7 million in debt and conceding that its regional Alaskan flight network became financially untenable in the turbulent years following the COVID-19 pandemic.

In its opening court filings, the company pointed to a perfect storm of global pressures — from Russia’s invasion of Ukraine to a sharp downturn in the cryptocurrency market — that strained liquidity and ultimately left the airline unable to keep up with day-to-day obligations.

From Pandemic Gamble to Financial Freefall

President and CEO Thomas Hsieh said in a first-day declaration that FLOAT acquired the regional air operations of Ravn Air Group after Ravn collapsed into bankruptcy in early 2020. The goal was ambitious: rebuild critical Alaskan routes while eventually expanding from Alaska and the U.S. West Coast into Asian markets. That expansion, Hsieh said, never materialized.

“The debtors are presently in default with respect to a number of obligations,” the filing states, warning that creditors had already begun lawsuits, collection efforts and lien actions. Bankruptcy, the company said, was the only way to halt what it described as a “race to the courthouse” and avoid a piecemeal liquidation.

Heavy Debt, Secured by Jets

FLOAT entered Chapter 11 carrying $22.4 million in secured debt under a 2025 term loan from NFS Capital LLC, backed by liens on three Boeing 757 aircraft and multiple engines. Just before the filing, entities tied to investor Josh Jones, who provided seed funding when FLOAT was founded in 2019, acquired that debt.

Over the past year, Jones also extended $11.3 million in additional secured financing to keep the airline afloat, covering payroll and essential operating costs. Beyond that, FLOAT lists $10 million in unsecured trade debt and $22 million in unsecured convertible notes, most of it held by Jones and his affiliates.

Jones-backed entities are now supplying $3.2 million in debtor-in-possession financing and have agreed not to enforce remedies tied to secured debt defaults — including repossessing the 757s — while the case proceeds. The new funds are intended to support a sale process, with management aiming to find a buyer willing to acquire the business as a going concern.

Reorganization or Sale on the Table

“Therefore, a reorganization is a possible avenue to restart operations if the right plan sponsor appears,” Hsieh said, adding that the company is also focused on using Section 363 of the Bankruptcy Code to maximize recoveries for creditors.

A first-day hearing is set for 10 a.m. Wednesday before U.S. Bankruptcy Judge Craig T. Goldblatt.

A Turbulent Origin Story

FLOAT was founded in 2019 with a futuristic pitch: commuter flights in Southern California that would let customers “Fly Over All Traffic,” shrinking three-hour drives into 15-minute hops. Operations began in February 2020 — and stalled just two weeks later when COVID-19 lockdowns wiped out demand almost overnight.

As the pandemic spread, FLOAT’s founders turned their attention north, eyeing Ravn’s essential Alaskan routes that ferry cargo, mail, medicine and passengers to remote communities. FLOAT acquired Ravn’s Corvus Airlines business and its FAA certificates in August 2020, rehiring about 350 former Ravn employees within three months and restoring critical air service in time to deliver the first COVID-19 vaccines to isolated regions.

Big Bets on Jets and Blockchain

The company then sought to build a larger footprint in Anchorage, planning a transpacific passenger operation under the New Pacific Airlines brand using newly acquired 757 aircraft. Alongside that effort, FLOAT backed FlyCoin, a blockchain-based loyalty program that rewarded customers with cryptocurrency tokens they owned directly. FlyCoin raised $28 million, which was loaned to New Pacific to accelerate its transpacific ambitions.

Those plans unraveled in 2022, when Russia’s invasion of Ukraine closed Russian airspace, cutting off key routes needed for Asian expansion. At the same time, violent swings in the crypto market chilled interest in FlyCoin as partners retreated amid negative sentiment toward digital assets.

Staffing Losses and Scrapped Routes

As travel rebounded, competition in Alaska intensified. Rival airlines lured away FLOAT pilots and staff with higher pay and signing bonuses, Hsieh said, leaving the company with an 80% loss of pilot positions by 2023. The staffing crisis forced repeated reductions in service.

Attempts to redeploy the 757 fleet on routes from Southern California to Las Vegas, Reno and Nashville failed to turn a profit and were abandoned. New Pacific ceased flying in 2024, and Alaskan operations were further pared back.

FLOAT later pursued charter contracts with several NHL teams starting in August 2024, hoping for a turnaround. Instead, those flights lost money, and asset sales in Alaska could not cover the losses. When a charter partner missed a $315,000 payment in November 2025, FLOAT could not make payroll.

With no runway left, the company laid off 115 employees and halted all flight operations. The Chapter 11 filing followed negotiations among FLOAT, the Jones entities and NFS Capital.

Legal Teams

The debtors are represented by Paige N. Topper, Nicholas Smargiassi and Zev M. Shechtman of Saul Ewing LLP.
The Jones entities are represented by Laura Metzger and Michael Trentin of Orrick Herrington & Sutcliffe LLP, along with Domenic E. Pacitti, Richard M. Beck and Sally E. Veghte of Klehr Harrison Harvey Branzburg LLP.