Global Aviation Holdings Inc. announced that the U.S. Bankruptcy Court for the Eastern District of New York (Brooklyn) approved the company’s debtor-in-possession (DIP) financing, on an interim basis.

An initial tranche of $15 million will be available immediately, allowing Global to continue to meet its working capital needs. Two subsequent tranches of $15 million each will also be made available upon the company’s achieving certain milestones in the DIP credit agreement, including labor negotiations and a fleet restructuring.

The DIP facility is being provided by certain holders of the company’s first lien notes, including Wells Fargo as administrative agent, in exchange for additional liens on certain of the company’s assets. Global and its advisors explored a variety of possible financing sources, and ultimately determined that the first lien lenders offered the most viable option for obtaining the necessary funding at this time. The approval also permits the company’s continued use of cash collateral.

“The court’s interim approval of our DIP financing is another step toward positioning Global to execute on its goals of restructuring fleet and labor costs and aligning capital structure with the size of the company,” said Rob Binns, chairman and CEO.

On Feb. 5, 2012, and through the voluntary filing of petitions to reorganize under Chapter 11 of the U.S. Bankruptcy Code, Global commenced a financial restructuring to achieve a cost and debt structure that is industry competitive and thereby assures the company’s continued long-term viability. The company will continue its business operations throughout the Chapter 11 process and intends to honor its customer, vendor and employee obligations without interruption.

Global Aviation Holdings Inc., based in Peachtree City, GA., is the parent company of North American Airlines and World Airways. Global is a commercial provider of charter air transportation for the U.S. military and a major provider of worldwide commercial global passenger and cargo air transportation services.