Great Lakes Airlines Defaults on $27.5 Million Loan

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CHEYENNE, WY - Newschannel 5 has confirmed that Cheyenne-based airline, Great Lakes Aviation, may be forced to turn over nearly all of its assets after defaulting on a $27.5 million loan.

According to a federal filing obtained from the U.S. Securities and Exchange Commission, the loan company, Callidus Capital Corporation, is allowed to “declare the Company’s debt obligations (approximately $27.5 million) to be immediately due and payable, to terminate the Lender’s obligation to advance any additional borrowings under the original terms of the Loan Agreement, and to take possession of substantially all of the Company’s assets. In addition, the event of default increases the rate of interest the Company will pay on outstanding obligations from 14% per year to a default rate of 17%.”

The paperwork was dated September 18, 2015 and signed by Stan Gadek, CFO of Great Lakes Aviation.

The $27.5 million loan was acquired on December 22, 2014 to help Great Lakes Aviation pay off loans from other lenders. Recently, the airline has been struggling from a pilot shortage and a more than 50% drop in travelers since last year.

We've repeatedly reached out to Great Lakes management, but have not yet heard back. However, Cheyenne Regional Airport Director, Tim Barth, tells us he didn't know anything about the default so couldn't comment on how it could affect the airport.