FLOAT Alaska - Chapter 11 Case Summary

Business Description

New Pacific Airlines, Inc. ("NPA"), formerly known as Northern Pacific Airways, Inc. and Corvus Airlines Inc., is a Washington corporation operating alongside its Debtor (collectively, the "Debtors" or the "Company"). The Debtors comprise a group of interrelated aviation and technology ventures spanning urban air mobility, regional Alaskan air service, transpacific passenger operations, and blockchain-based loyalty rewards.

• The Company's operations encompass four principal business lines:
  • FLOAT Shuttle Inc.: An urban mobility service formed to reduce Southern California commutes from three-plus hour drives to 15-minute flights (FLOAT stands for "FLy Over All Traffic").
  • FLOAT Alaska LLC (dba Ravn Alaska): A regional airline providing essential air services to hard-to-reach Alaska communities, with approximately 50% of legacy revenue derived from medical-related travel and cargo.
  • New Pacific Airlines: A transpacific passenger carrier utilizing narrow-body Boeing 757 aircraft to connect Asia and North America via Anchorage, modeled after Icelandair's successful hub strategy.
  • FlyCoin, Inc.: A blockchain-based airline loyalty platform that reimagines rewards as cryptocurrency tokens owned directly by customers in their own crypto wallets, rather than traditional airline-controlled points.

The Debtors' leadership includes the President and CEO, who serves as an officer, manager, or director across all Debtor entities, including Corvus Alaska Holdings Inc., FLOAT Alaska Holdings LLC, FLOAT Alaska IP LLC, FLOAT Alaska LLC, FLOAT Shuttle Inc., and FlyCoin, Inc.

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Corporate History

The Company's origins trace back to 2019 with the co-founding of FLOAT Shuttle Inc., a Delaware corporation established to operate urban air mobility services in Southern California. The founding leadership team included Rob McKinney, former CEO of a Hawaiian regional airline, and Josh Jones, one of Float Shuttle's seed investors.

• Float Shuttle commenced operations in late February 2020 but was forced to pause indefinitely just two weeks later when COVID-19 stay-at-home orders were issued in Los Angeles County on or about March 15, 2020.

Acquisition of Ravn Alaska Assets

While Float Shuttle's operations remained paused, its founders learned of the Chapter 11 filings of Ravn Air Group, Inc. and affiliates, which filed voluntary petitions on April 5, 2020 in the U.S. Bankruptcy Court for the District of Delaware. Float Shuttle's socially minded investment group saw an opportunity to meet community needs by acquiring certain Ravn assets.

• Ravn Air Group was highly leveraged and unable to sell substantially all assets to a single buyer as a going concern, instead liquidating through sales of multiple lots of aircraft, real estate, equipment, and other assets.
• Float Shuttle successfully bid to acquire the stock of Corvus Airlines Inc. dba Ravn Alaska, the Ravn affiliate holding the FAA Part 121 certificate for regional flights throughout Alaska.
• Prior to closing, the founders created FLOAT Alaska LLC to serve as the acquisition vehicle. The transaction closed on or about August 5, 2020.

Following the acquisition, Rob McKinney assumed the role of CEO of Float Alaska, while the Company's President relocated with their families to Alaska to restart operations under the "Ravn Alaska" brand. Float Alaska rehired approximately 350 former Ravn Air Group employees and resumed operations within approximately three months of closing.

• Float Alaska delivered the first COVID-19 vaccines to a number of rural counties, achieving its initial goal of resuming essential air services to remote Alaska communities.

Expansion into Transpacific Operations

Leveraging the strategic position of Anchorage International Airport—the third busiest cargo airport in the world due to its location on the great circle path between major Asian and North American cities—Float Alaska developed a business plan for transpacific passenger operations utilizing narrow-body jets.

• The Company sought to apply Icelandair's successful hub model to the North Pacific region, aiming to achieve a similar impact for Alaska tourism while utilizing synergies with the Ravn Alaska regional network to help tourists reach remote communities.
• In October 2021, Float Alaska Holdings LLC purchased the airline's first Boeing 757 aircraft, capitalizing on depressed aircraft prices following pandemic-related groundings.
• Float Alaska also invested $6 million into a new lounge and terminal remodel at Anchorage International Terminal.
• Corvus Airlines was renamed "Northern Pacific Airways" to reflect its expanded transpacific mission.

Rebranding to New Pacific Airlines

In 2022, Northern Pacific Airways faced a legal challenge from BNSF over use of the "Northern Pacific" mark. Following a period of litigation and negotiation, Float Alaska settled the dispute by changing the airline's name to New Pacific Airlines, Inc.

FlyCoin Launch

In October 2021, Float Alaska established FlyCoin, Inc. to develop a blockchain-based airline loyalty platform. The venture was designed to capitalize on surging interest in blockchain and cryptocurrency while providing a real-world use case beyond NFT novelty.

• FlyCoin's go-to-market strategy centered on partnering with New Pacific Airlines (then Northern Pacific Airways) and Ravn Alaska as anchor airlines to accelerate distribution and adoption.
• FlyCoin lent $28 million of funds raised from investors to Northern Pacific Airways to help accelerate the launch of its transpacific operation, thereby introducing and distributing FlyCoin internationally.

Organizational Structure

Except for Float Shuttle, all Debtors are direct or indirect subsidiaries of FLOAT Alaska LLC.

• FLOAT Alaska LLC: The primary holding company, owned 5.5% by FLOAT Shuttle, Inc., with the remainder held by individuals and other non-public entities.
• Wholly Owned Subsidiaries of FLOAT Alaska LLC:
  • Corvus Alaska Holdings Inc. (Delaware corporation)
  • FLOAT Alaska Holdings LLC (Delaware limited liability company)
  • FLOAT Alaska IP LLC (Delaware limited liability company)
• FlyCoin, Inc.: Owned 52.818% by FLOAT Alaska LLC, with the remainder held by individuals and other non-public entities.
• FLOAT Shuttle Inc.: A Delaware corporation that holds a 5.5% ownership stake in FLOAT Alaska LLC but is not itself a subsidiary of the Float Alaska enterprise.

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Operations Overview

Business Segments

The Debtors' operations span four distinct but interrelated business segments:

• Urban Air Mobility (FLOAT Shuttle): Designed to transport Southern California commuters via short-hop flights, reducing multi-hour drives to 15-minute flights. Operations were paused indefinitely following COVID-19 restrictions in March 2020.
• Regional Alaskan Air Service (Ravn Alaska): Provides essential air services to remote Alaska communities, with a significant portion of revenue historically derived from medical-related travel and cargo. The operation was restarted following the August 2020 acquisition from the Ravn Air Group bankruptcy.
• Transpacific Passenger Operations (New Pacific Airlines): Connects Asia and North America through Anchorage using narrow-body Boeing 757 aircraft, seeking to replicate Icelandair's successful hub-and-spoke model for Alaska tourism.
• Loyalty Technology (FlyCoin): Operates a blockchain-based loyalty platform offering cryptocurrency tokens as airline rewards, partnered with the Company's aviation operations as anchor distribution channels.

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Prepetition Obligations

As of the Petition Date, the Debtors' primary secured creditor is Josh Jones and his affiliated entities, principally Jones Holding LLC. The Company's prepetition capital structure includes the following obligations:

Secured Debt

• NFS Capital Term Loan: Approximately $22.4 million was outstanding as of January 16, 2026, under a term loan agreement dated May 2025 with NFS Capital, LLC, a private lender with no prior relationship to the Debtors or their insiders.
  • Borrowers under the facility include Debtors New Pacific Airlines and Float Alaska Holdings.
  • The loan is secured by three Boeing 757 aircraft and four engines (collectively, the "Boeings" or "Aircraft"). One of the aircraft had leased engines that were repossessed by their owner in December 2025.
  • Jones Holding has since acquired NFS Capital's rights under the term loan agreement.
• Jones Prepetition Loans: Approximately $11.3 million in principal is outstanding under several secured promissory notes and related loan agreements with Jones Holding as lender.
  • Between December 2024 and January 2026, these loans provided essential liquidity to maintain business operations, including payroll and goods and services necessary for regular flight operations.
  • The Debtors employed approximately 245 employees from December 2024 through August 2025, declining to between 120 and 130 employees from August 2025 until November 26, 2025. The Jones Prepetition Loans funded salaries and benefits for this workforce.
  • The Prepetition Lender (Jones Holding) is also the proposed DIP Lender in these cases.

Unsecured Debt

• The Debtors owe in excess of $10 million to non-insider general unsecured creditors, comprised primarily of trade creditors and convertible note holders with respect to New Pacific Airlines.
• Insider Convertible Notes: Josh Jones, personally or through family trusts, holds nearly $22 million in convertible notes issued by New Pacific Airlines.

Forgiven Debt

• Notably, the amounts currently owed to Josh Jones (individually or through entities and trusts) do not include over $50 million in secured and unsecured debt previously owed by New Pacific Airlines that the Prepetition Lender forgave as of December 31, 2024.

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Events Leading to Bankruptcy

Geopolitical and Industry Disruptions

• The Debtors' business plans encountered severe challenges beginning in 2022, driven by geopolitical upheaval and cryptocurrency market turmoil:
  • Russia's full-scale invasion of Ukraine on February 24, 2022, resulted in the closure of Russian airspace to U.S. commercial flights. The Debtors were consequently unable to conduct their planned Pacific routes due to the lack of an Extended-range Twin-engine Operations Performance Standards ("ETOPS") certification—a credential requiring a minimum of 24 months to obtain.
  • The cryptocurrency sector experienced significant turbulence in 2022 as several major platforms collapsed amid highly publicized financial scandals. FlyCoin, which had been actively pursuing partnerships with multiple airlines to form a global alliance of low-cost carriers, saw potential partners withdraw from negotiations, unwilling to associate with blockchain-based projects despite FlyCoin's utilitarian and non-speculative use of the technology.
  • The crypto crisis also caused the failure of several financial institutions serving the industry, including banks where FlyCoin held accounts. With no viable path to secure customers, FlyCoin executed a reduction in force, retaining only a skeleton crew to support software development for New Pacific Airlines and Ravn Alaska.

Competitive Pressures and Pilot Shortage Crisis

• The Debtors faced mounting competitive and labor challenges that severely impacted their Alaska regional operations:
  • In Fall 2022, Aleutian Airways launched service to Dutch Harbor—Ravn Alaska's most lucrative market—directly eroding the Debtors' profitability.
  • As the world emerged from COVID-19 isolation and air travel demand surged between 2022 and 2023, major airlines aggressively recruited pilots from regional carriers. The Debtors' pilots were offered double their salaries and signing bonuses of up to $150,000, resulting in the loss of 80% of pilot positions within a single year.
  • Alaska's highly seasonal market, with the majority of revenue concentrated during brief summer months, amplified the impact of the pilot shortage. By summer 2023, the Debtors could operate only one-quarter of originally planned flights on their busiest route, Anchorage-Kenai.
• In Fall 2023, the Debtors made the difficult decision to close the Kenai and King Salmon routes and implement workforce reductions totaling 106 employees and 49 vacant positions over several months.

Boeing 757 Domestic Expansion

• In summer 2023, New Pacific Airlines launched Boeing 757 operations with domestic scheduled service from Ontario, California, approximately 40 miles east of Downtown Los Angeles:
  • Initial routes included Ontario to Las Vegas, later expanding to Reno and Nashville. The Ontario-Nashville route achieved a 90% load factor during spring break, demonstrating promising demand.
  • However, the Debtors determined that reaching breakeven would require expansion into at least five additional markets, with each new market necessitating approximately six months of loss-generating investment before potential profitability.
  • The Debtors lacked sufficient capital to execute this expansion plan. Losses mounted on both the legacy Ravn Alaska business and the new Boeing 757 operations, with cash burn reaching approximately $5 million per month and requiring continuous capital infusions to maintain operations.

Strategic Pivot and Alaska Route Reductions

• In early 2024, with the Ukraine war ongoing and no clear path to profitability, the Debtors executed a strategic pivot:
  • New Pacific Airlines ceased scheduled Boeing 757 operations and transitioned to charter flights in an effort to reduce losses.
  • Ravn Alaska's route map was further reduced, with service to the Aleutian Islands terminated, triggering additional station closures and workforce reductions.
  • Leadership changes followed, with Rob McKinney departing and Thomas Hsieh assuming the role of Chief Executive Officer.

Essential Air Service Subsidy Efforts

• To stabilize Float Alaska's regional business, the Debtors pursued Essential Air Service ("EAS") subsidies from the U.S. Department of Transportation ("DOT"):
  • The Debtors worked with the four remaining Alaska communities they served—all designated EAS communities—to support their subsidy applications. Three communities had been receiving service without any subsidies, while the fourth provided subsidies insufficient to cover operating costs.
  • In July 2024, DOT reopened bidding for EAS subsidies. Simultaneously, the Debtors negotiated with Aleutian Airways regarding a potential sale of the Alaska regional airline business as an alternative if adequate subsidies were not secured.
  • On October 14, 2024, Aleutian Airways notified DOT of its intent to operate one of the routes without subsidies, an offer the Debtors could not financially match.

Aleutian Airways Transaction

• In October 2024, the Debtors entered into an agreement with Aleutian Airways to transfer their regional Alaska business:
  • The agreement provided for the transfer of leased Dash-8 aircraft, routes, and certificates, along with $2 million in cash, in exchange for minority membership interests in Aleutian Airways.
  • Although Aleutian Airways ultimately secured DOT EAS contracts for three of the four communities Ravn Alaska had served, it did not complete the assumption of the Debtors' Dash-8 aircraft and associated routes.
• In the first quarter of 2025, the Canadian lessor of several Dash-8 aircraft declined to renew the leases and repossessed the aircraft. The Debtors attempted to maintain limited service with remaining aircraft, but by August 2025, regional operations ceased entirely.

Charter Operations and the PJS Agreement

• In August 2024, New Pacific Airlines signed an exclusive agreement with Elevate Aviation Group's Private Jet Services ("PJS") to operate charter flights for six NHL teams and additional ad hoc services:
  • The Debtors converted three Boeing 757 aircraft from high-density 181-seat configurations to VIP layouts with 78 seats in just three weeks—a process that typically requires six to eight weeks per aircraft.
  • However, the PJS contract proved financially untenable, as it shifted numerous incidental costs (extra handling fees, repositioning costs) and extraordinary expenses (airport special event fees, de-icing charges) onto the airline. The Debtors lost money on every flight under the agreement.
• Although the Debtors negotiated a contract amendment in May 2025 to address unsustainable losses, the NHL season had ended and few charter flights materialized during summer 2025. Two of the three Boeing 757s also required expensive C-check maintenance, taking them out of commission for approximately one month each.
  • The Debtors furloughed employees while executives, including the CEO, took voluntary pay cuts to survive the summer. Asset liquidation efforts, including the sale of remaining Dash-8 aircraft, took longer than anticipated.

Liquidity Crisis and Operational Shutdown

• When the 2025 NHL season commenced in the fall, the Debtors continued to face severe liquidity challenges despite engaging in M&A discussions with numerous interested parties:
  • Negotiations with PJS to increase charter flight rates failed to produce an agreement on new terms.
  • On November 25, 2025, PJS failed to remit a payment of $315,187.50, leaving the Debtors unable to meet future payroll obligations.
  • On November 26, 2025, the Debtors ceased operations and laid off 115 employees. The final PJS payment remains outstanding.

Governance Enhancements and Advisor Engagement

• In late November 2025, Thomas Allison was appointed as an independent director to the Debtors' boards, serving alongside Josh Jones and Thomas Hsieh:
  • Mr. Allison, with over 40 years of experience in financial and restructuring advisory services, was designated as the sole member of a special committee with exclusive authority over insider transactions, including negotiations with Jones Holding as DIP Lender and matters concerning the NFS Capital transaction.
• The Debtors engaged the following professionals: Saul Ewing LLP as general bankruptcy counsel; Sherwood Partners, Inc. as financial advisor; Sage Popovich, Inc. as sales agent; and Stretto, Inc. as claims and administrative agent.

NFS Capital Debt and Pre-Filing Negotiations

• The Debtors' primary assets—three Boeing 757 aircraft and four engines—were encumbered by a first priority lien held by NFS Capital:
  • NFS Capital asserted defaults and claimed approximately $22.4 million in secured debt as of January 16, 2026, comprising $14.7 million in principal, $5.6 million in future interest, $1.75 million in prepayment fees, plus default interest and other charges. The Debtors disputed amounts beyond principal and non-default interest.
  • NFS Capital threatened foreclosure on the aircraft.
• Shortly before the bankruptcy filing, Jones Holding (the DIP Lender, an entity owned by Josh Jones) entered into an agreement with NFS Capital that included:
  • Assignment of NFS Capital's loan to the DIP Lender;
  • A sharing arrangement for proceeds from the sale of the Boeing aircraft; and
  • A sale process timeline of 75 days after the Petition Date or 90 days after execution of the agreement, whichever is later.
• A side letter resolved disputes concerning the total amount due under the NFS Capital loan. The DIP Lender's forbearance from exercising remedies allows the Debtors to conduct a value-maximizing sale process without the threat of immediate relief from stay motions or Section 1110 enforcement actions.

DIP Financing and Path Forward

• The Debtors obtained DIP financing from Jones Holding LLC to support the Chapter 11 liquidation process:
  • The DIP Loan provides approximately $3.23 million in post-petition financing, with a dollar-for-dollar roll-up of prepetition secured debt and a pledge of real estate collateral from non-debtor guarantor FLOAT Alaska Real Estate, LLC.
  • After extensive efforts by the Debtors and their advisors, the DIP Lender emerged as the only party willing to finance the Chapter 11 process.
• The Debtors filed for Chapter 11 to execute a sale of substantially all assets free and clear of liabilities under Section 363:
  • A going-concern sale that would preserve the Company's Part 121 certificate remains a possibility if an appropriate plan sponsor emerges.
  • Sage Popovich, Inc., an experienced aircraft liquidator that handled the sale of aircraft in the prior Ravn bankruptcy, has been engaged to maximize recovery from the aircraft assets.
  • Sherwood Partners, Inc. will coordinate the broader asset sale process and evaluate potential going-concern transactions.