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Monroe County OKs broader settlement authority in Silver Airways bankruptcy
Summary
The Monroe County Board of County Commissioners granted the county attorney authority to settle claims related to Silver Airways’ Chapter 11 case, allowing staff to accept payments and negotiate with bankruptcy counsel as the airline’s estate evolves.
The Monroe County Board of County Commissioners on April 28 delegated expanded settlement authority to the county attorney to resolve claims tied to Silver Airways’ Chapter 11 bankruptcy proceedings.
The action authorizes the county attorney to negotiate and accept settlement payments related to rent, landing fees and security fees owed to Key West International Airport for the December 2024–February 2025 period — and to do so without returning to the board for every settlement if timing in bankruptcy court requires a quicker response.
County staff opened the item by noting the situation has been fluid since Silver Airways filed for Chapter 11 on Dec. 30, including motions filed in bankruptcy court to protect passenger facility charges and continued discussions about the airline’s financial viability. Staff reported the county received a partial payment of about $71,000 the week before the meeting and that a settlement hearing was scheduled for May 7 in bankruptcy court.
County attorney Bob said the motion would expand his settlement authority so staff can “address this more nimbly rather than having to reduce it in writing, bring it back in a settlement agreement to the Board, which may not work with the bankruptcy court's timeline.” He asked for authority to settle related claims up to the full amount owed and to report back to the board.
Commissioners had no further discussion and the motion carried by voice vote; no roll-call tally was recorded in the public transcript.
The board’s action does not set a fixed settlement amount. County staff cautioned that outcomes remain uncertain: the airline has new debtor-in-possession financing, and the pending court process could delay resolution by weeks if a sale is pursued. Staff also noted federal bankruptcy rules could allow payment of pre-petition claims if a debtor assumes a lease under the signatory agreement.
The board item and staff remarks refer to motions handled by retained bankruptcy counsel Kaplan & Kirsch and to coordination among airports represented in the airline’s case.
The county will receive reports back to the board after settlements are negotiated or approved.
