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Home My WebLink AboutItem C1 Liz Yongue From: Gomez-Krystal <Gomez-Krystal@MonroeCounty-FL.Gov> Sent: Tuesday, April 22, 2025 10:29 AM To: Ballard-Lindsey; County Commissioners and Aides; Kevin Madok; Senior Management Team and Aides; Liz Yongue; InternalAudit Cc: Shillinger-Bob; Williams-Jethon; Cioffari-Cheryl; Livengood-Kristen; Rubio-Suzanne; Pam Radloff; County-Attorney; Allen-John; Danise Henriquez; Hurley-Christine; Rosch- Mark; Gambuzza-Dina; Beyers-John; InternalAudit; Valcheva-Svilena Subject: ADD-ON Item C1 04/28/2025 SPECIAL BOCC Meeting Attachments: AIS 3954 C1.pdf Good morning, Please be advised,the following Add On Item is set for inclusion day-of meeting prior to the approval of the Agenda: "Approval to accept a post Chapter 11 bankruptcy petition settlement from Silver Airways in the amount of$91,528.73, which is less than the$120,324.06 they owe for December 2024(pro-rated) through February 2025 for rent, landing fees and security fees at the Key West International Airport." The Agenda Item Summary is attached.Once approved,this will be considered Add On Item C1. Sincerely, )V,rystaC crovuez Executive Administrator Monroe County Administrator's Office 1100 Simonton Street,Suite 2-20S Key West, FL 33040 Office:30S-292-4441 Cell:30S-8SO-8694 Courier Stop#1 Notary Public www.ri"ioriroeco�,,iirity.-fu..gov gorriez..kry:st,, 1.@ri"ioriroeco�,,iirity..-fl..gov ,.airity..fl.gov PLEASE NOTE: FLORIDA HAS A VERY BROAD RECORDS LAW. MOST WRITTEN COMMUNICATIONS TO OR FROM THE COUNTY REGARDING COUNTY BUSINESS ARE PUBLIC RECORDS AVAILABLE TO THE PUBLIC AND MEDIA UPON REQUEST. YOUR EMAIL COMMUNICATION MAY BE SUBJECT TO PUBLIC DISCLOSURE. 1 BOARD OF COUNTY COMMISSIONERS COUNTY of MONROE Mayor James K.Scholl,District 3 The Florida Keys Mayor Pro Tern Michelle Lincoln,District 2 Craig Cates,District 1 David Rice,District 4 Holly Merrill Raschein,District 5 Special Board of County Commissioners Meeting Meeting April 28, 2025 Agenda Item Number: 2023-3954 BULK ITEM: Yes DEPARTMENT: Airports TIME APPROXIMATE: STAFF CONTACT: Richard Strickland N/A AGENDA ITEM WORDING: Approval to accept a post Chapter 11 bankruptcy petition settlement from Silver Airways in the amount of $91,528.73, which is less than the $120,324.06 they owe for December 2024 (pro-rated) through February 2025 for rent, landing fees and security fees at the Key West International Airport. ITEM BACKGROUND: On December 30, 2024, Silver Airways filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code. At a hearing in the Silver bankruptcy proceedings held on April 17, 2025, it was proposed by the airline to get the company to a sale, called a debtor in possession financing or"DIP" financing for short. The stated goal of the DIP facility is to keep the airline operating so that a sale can be conducted, and the need to pay post-petition priority claims such as those of the airports. PREVIOUS RELEVANT BOCC ACTION: N/A INSURANCE REQUIRED: No CONTRACT/AGREEMENT CHANGES: N/A STAFF RECOMMENDATION: Approval. DOCUMENTATION: Kaplan Kirsch email dated 4.16.2025.pdf FINANCIAL IMPACT: 1 Financial Impact: $91,528.73 revenue 2 From: "Eric T. Smith" < r.ire iia;;l�7i(Q�II*< IrV< ir7ill*iiir;:w� 1�7i.� [ Ir > Date:April 16, 2025 at 3:22:21 PM EDT To: Strickland-Richard <StiriicIktair7id ft,g v>, Drew Dillworth <II)I) VVw oiral�7i(QPsleaiririisweaveir.coiiiii>, Shillinger-Bob <ShiiiVViiir geir IBo ) Piiiiioiriiiroe o jiriiay ft,g v>, Mercado-Pedro <IMeirwwado Ilrew lro(QPiiiiioiriiir[weco[ jiriiay:ft,g ww> Cc: Stephanie Griffin Mateo <°l irii� .iiir7iir < a [w(Qwll*<.(V< ir7ill*iiir wwl�7i.wwrir >, "Eric T. Smith" Subject:Silver Airways Update CAUTION:This email originated from outside of the County.Whether you know the sender or not, do not click links or open attachments you were not expecting. Update from Silver Airways bankruptcyland.... Shockingly, it appears that the airline has landed a DIP lender. The maximum amount of the line of credit is $5.5 million. The catch is that the airline can't pay all of its administrative priority claims and also have sufficient funds to operate if they pay the admins right away. The airline has asked airports to take their payments over a period of time. Some airports have received direct a mails with the proposal. We received the following: hrst Second Grp or l Ba14.15,25 MP Fkviding, IMP Ftinding f Weeks After I Weeks After 7 ' ,84 .W 32,000,00 24,00040 11, 2 . 1,1,,925,00 TPA 384,889,69 164,00040 116,000.00 57,"5.00 57A4&00 EYW 91,528.73 27,0K00 28u000,00 ,N.w7,.n'u"u,kM&0 1.3wW..',6 .00 F'LL 1 7„21%91 75,00,0.00 57,0X0027,610t 27„ '10AX1 What is absent from the above proposal is(a)any accounting for other administrative priority claims that are not airports and, (b)the most recently filed claim of MCO,which exceeds$500,000. We have indicated that our clients can't even consider entertaining a compromise if we do not see that every other claimant is getting similar treatment under the proposal and we've requested to see a global proposal that addresses all of the claims.We are waiting for a response. In the meantime, please consider whether your airport wants to consider the above in the event that each administrative claimant gets the same treatment. The following items are relevant- Our motions for payment of airport invoices is set for May 7 so even if we say no tomorrow, the airline can still string us out for a couple of weeks and when we get an order, it will likely say"pay airport within days of this order". Also, it is possible that if Silver can't cut a deal with the airports, the DIP does not move forward and the case moves to a liquidation type of situation.We know that at this point,there is no way the airline can pay all of the administrative expenses—making it likely that your airport will get less (potentially substantially less)than what is currently claimed. So, all of this is a calculated risk in terms of payout to your airport. However,we understand that other factors may be in play as well. For example,this airline just keeps racking up bills without a plan to pay 3 airports. Your airport may decide to continue to insist on full and immediate payment for reasons that are beyond just dollars and cents. That's foryour airport to ponder. For now, that is all that is noteworthy.We will keep you up to date as developments occur. Eric&Stephanie Eric I Smith Attorney at Law KAPLAN KI RSCH 0202.955.5600 1 F 20 95u. 5616 1634 Eye (1)Street, NW I Suite 300 1 Washington, DC 20006 w�r��lk�°.�to a wrCaird, 4 i 5 Liz Yongue From: Gomez-Krystal <Gomez-Krystal@MonroeCounty-FL.Gov> Sent: Tuesday, April 22, 2025 10:50 AM To: Ballard-Lindsey; County Commissioners and Aides; Kevin Madok; Senior Management Team and Aides; Liz Yongue; InternalAudit Cc: Shillinger-Bob; Williams-Jethon; Cioffari-Cheryl; Livengood-Kristen; Rubio-Suzanne; Pam Radloff; County-Attorney; Allen-John; Danise Henriquez; Hurley-Christine; Rosch- Mark; Gambuzza-Dina; Beyers-John; InternalAudit; Valcheva-Svilena Subject: REVISED AGENDA ITEM WORDING ADD-ON Item C1 04/28/2025 SPECIAL BOCC Meeting Attachments: AIS 3954 C1 REV.pdf Importance: High All, The agenda item has revised wording for C1. Please take a look at the attachment. From: Gomez-Krystal <Gomez-Krystal@ Mon roeCounty-FL.Gov> Sent:Tuesday,April 22, 2025 10:29 AM To: Ballard-Lindsey<Ballard-Lindsey@ Mon roeCounty-FL.Gov>; County Commissioners and Aides <County_Commissioners2@monroecounty-fl.gov>; Kevin Madok<kmadok@ Mon roe-Clerk.Com>; Senior Management Team and Aides<Senior_Management_Team_and_Aides@ Mon roecounty-fl.gov>; Liz Yongue<eyongue@monroe- clerk.com>; 'InternalAudit@monroeclerkFL.onmicrosoft.com' <InternalAudit@monroeclerkFL.onmicrosoft.com> Cc: Shillinger-Bob<ShiIIinger-Bob@ Mon roeCounty-FL.Gov>;Williams-Jethon <Williams-Jethon@MonroeCounty- FL.Gov>; Cioffari-Cheryl <Cioffari-Cheryl@MonroeCounty-FL.Gov>; Live ngood-Kristen <Livengood- Kristen@ Mon roeCounty-FL.Gov>; Rubio-Suzanne<Rubio-Suzanne@ Mon roeCounty-FL.Gov>; Pam Radloff <pradloff@monroe-clerk.com>; County_Attorney<Cou nty_Attorney@ Mon roeCou nty-FL.Gov>;Allen-John <Allen- John@MonroeCounty-FL.Gov>; 'Danise Henriquez' <d hen riquez@monroe-clerk.com>; Hurley-Christine<Hurley- Christine@MonroeCounty-FL.Gov>; Rosch-Mark<Rosch-Mark@ Mon roeCounty-FL.Gov>; Gambuzza-Dina <Gambuzza- Dina@MonroeCounty-FL.Gov>; Beyers-John <Beyers-John@MonroeCounty-FL.Gov>; InternalAudit@monroeclerkFL.onmicrosoft.com;Valcheva-Svilena <Valcheva-Svilena@MonroeCounty-FL.Gov> Subject:ADD-ON Item C1 04/28/2025 SPECIAL BOCC Meeting Good morning, Please be advised,the following Add On Item is set for inclusion day-of meeting prior to the approval of the Agenda: "Approval to accept a post Chapter 11 bankruptcy petition settlement from Silver Airways in the amount of$91,528.73, which is less than the$120,324.06 they owe for December 2024(pro-rated) through February 2025 for rent, landing fees and security fees at the Key West International Airport." The Agenda Item Summary is attached.Once approved,this will be considered Add On Item C1. Sincerely, )(�',rystaC crovuez i Executive Administrator Monroe County Administrator's Office 1100 Simonton Street,Suite 2-20S Key West, FL 33040 Office:30S-292-4441 Cell:30S-8SO-8694 Courier Stop#1 Notary Public .rrioriror:co� ,iirrty-f1..gov gorriez-kry:st,, 1.@ri"ioriroeco�,,iirity..-fl..gov PLEASE NOTE: FLORIDA HAS A VERY BROAD RECORDS LAW. MOST WRITTEN COMMUNICATIONS TO OR FROM THE COUNTY REGARDING COUNTY BUSINESS ARE PUBLIC RECORDS AVAILABLE TO THE PUBLIC AND MEDIA UPON REQUEST. YOUR EMAIL COMMUNICATION MAY BE SUBJECT TO PUBLIC DISCLOSURE. 2 CI BOARD OF COUNTY COMMISSIONERS COUNTY of MONROE Mayor James K.Scholl,District 3 The Florida Keys Mayor Pro Tern Michelle Lincoln,District 2 Craig Cates,District 1 David Rice,District 4 Holly Merrill Raschein,District 5 Special Board of County Commissioners Meeting Meeting April 28, 2025 Agenda Item Number: C 1 2023-3954 BULK ITEM: Yes DEPARTMENT: Airports TIME APPROXIMATE: STAFF CONTACT: Richard Strickland N/A AGENDA ITEM WORDING: Approval to accept a post Chapter 11 bankruptcy petition settlement from Silver Airways in the amount of $91,528.73, which is less than the $120,324.06 they owe for December 2024 (pro-rated) through February 2025 for rent, landing fees and security fees at the Key West International Airport and authorization for the County Attorney to sign any related documents. ITEM BACKGROUND: On December 30, 2024, Silver Airways filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code. At a hearing in the Silver bankruptcy proceedings held on April 17, 2025, it was proposed by the airline to get the company to a sale, called a debtor in possession financing or"DIP" financing for short. The stated goal of the DIP facility is to keep the airline operating so that a sale can be conducted, and the need to pay post-petition priority claims such as those of the airports. PREVIOUS RELEVANT BOCC ACTION: N/A INSURANCE REQUIRED: No CONTRACT/AGREEMENT CHANGES: N/A STAFF RECOMMENDATION: Approval. DOCUMENTATION: Kaplan Kirsch email dated 4.16.2025.pdf 1 FINANCIAL IMPACT: Financial Impact: $91,528.73 revenue 2