Island Air still owes the state Department of Transportation nearly a year’s worth of rent and fees.
The state is the largest unsecured creditor, and as the bills piled up, Island Air pinned its hopes on a rescue loan.
According to court filings, Island Air owed the DOT $1.5 million.
In the last audited airport financials, rent and fees amounted to around $1.8 million for the fiscal year ending June 30, 2016.
According to a budget that Island Air gave the court, they said a deferral agreement had been entered into with the state.
The hole was deep and getting deeper. A cash flow budget they filed with the court showed just $348,739 in cash on hand and $3.4 million projected in monthly sales.
But that wasn’t enough to get out of the red.
Fuel alone gobbled up $408,000 a month, and payroll and benefits cost $1.85 million.
The airline penciled in a November rescue loan called debtor in possession financing and officials told the court they were talking with multiple prospective investors for that.
But without it, there was just no more cash.
We’ll follow up with the Department of Transportation about the terms of that deferral agreement, and if the state stands to get anything in liquidation to chip away at the balance the defunct airline walks away from.
