Dynamic International Airways filed a voluntary Chapter 11 petition with the U.S. Bankruptcy Court in the Middle District of North Carolina, Greensboro Division.

The airline’s decision to file follows litigation matters resulting from Hajj flights the airline operated in 2014 for Air India. It also follows the entry of a judgement in the U.S. District Court for the Middle District of North Carolina affirming an arbitration award against Dynamic issued by the Canadian Arbitration Association in April 2017, which determined that Dynamic was in breach of contract by failing to pay commissions to BKP Enterprises in connection with the Hajj flights. While the airline has filed a notice of appeal and intends to challenge the judgment and award, Dynamic has no immediate recourse to stay the judgment and has determined the commencement of the Chapter 11 case is necessary.

High Point, NC-based Dynamic provides charter and contract commercial passenger air travel services to the general public and is a licensed and certificated air carrier authorized by the U.S. Department of Transportation and the U.S. FAA. The Dynamic fleet of aircraft includes six Boeing 767s, which operate international flights between U.S. cities and territories and foreign countries.

During the Chapter 11 case, Dynamic intends to continue its normal operations and has arranged for a credit facility to facilitate both its operations while in Chapter 11 and also its ability to reorganize. According to documents filed with the bankruptcy court, Solitude Strategies has agreed to provide to a maximum principal amount of $6 million in accordance with the debtor-in-possession loan and security agreement.

“Operating under the protection of the U.S. Bankruptcy Court will enable us to continue to serve our customers, keep our team employed and work with our vendors while we navigate through the challenges presented,” said Paul Kraus, Dynamic CEO. “Once we have completed the reorganization process, we expect Dynamic Intl. to emerge as a stronger company with a sound financial structure that is appropriate not only for today’s level of business activity, but also for the future.”

Lender Solitude Strategies is owned equally by Kraus and Kenneth M. Wooley, the airlines’ ultimate principals.