Cargo Airline Western Global Reaches Bankruptcy Financing Deal

Western Global Airlines LLC has reached a deal with creditors that would allow the cargo carrier to keep operating while it reworks its debt load in a potential bankruptcy, according to people familiar with the matter.

The distressed carrier has lined up $77.3 million of bankruptcy financing at a rate of 9% over the Secured Overnight Financing Rate to fund the company’s operations while in Chapter 11 protection, according to the people, who asked not to be identified because the matter is private. The cargo airline is expected to seek court protection from creditors in the coming days, the people ...