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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.