Debt

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Debt

Debt

Debt

Debt consists of the following (with interest rates, as of the dates presented):

	September 30, 2023		December 31, 2022
Aircraft Notes, due December 31, 2025 (4.0%)	$	52,554	$	61,222
Less: current maturities	52,554		9,154
Long-term debt	$	—	$	52,068

On August 4, 2023, Air Wisconsin received a notice of default and reservation of rights ("Notice") related to certain credit agreements ("Aircraft Credit Agreements") Air Wisconsin entered into with a senior lender and loan trustee. The Notice alleges a default under the Aircraft Credit Agreements relating to Air Wisconsin's failure to pay certain amounts thereunder. If the Notice were correct, the total outstanding principal balance of $48,600 would have been due and payable. Air Wisconsin believes the alleged default is without merit and intends to contest the claims in the Notice. However, Air Wisconsin has notified the lender that it would be willing to prepay the entire outstanding principal balance of the loans subject to certain terms and conditions and is negotiating a prepayment agreement with the lender. If such an agreement were entered into, the agreed upon amount of the balance of the loans outstanding under the Aircraft Credit Agreements would likely become due within the next 12-month period. Although there can be no assurance that the parties will enter into an agreement, given its receipt of the Notice and the existence of the negotiations regarding the proposed prepayment, the Company has reclassified, as of September 30, 2023, the entire balance of the loans outstanding under the Aircraft Credit Agreements as current portion of long-term debt on the condensed consolidated balance sheets.

In June 2023, Air Wisconsin prepaid approximately $3,500 of the principal amount outstanding under the Aircraft Notes due December 31, 2025 (the "Aircraft Notes"). The prepayment resulted in a $70 gain on extinguishment of debt due to the decrease in previously expected future interest that was capitalized.

Maturities of debt for the periods subsequent to September 30, 2023, are as follows:

Fiscal Year	Amount
October 2023 through December 2023	$	486
2024	52,068
2025	—
Total	$	52,554

The debt agreements include certain covenants. At September 30, 2023 and December 31, 2022, Air Wisconsin believes it was in compliance with all of the covenants in its debt agreements.

As of September 30, 2023, all of the Company’s debt was subject to fixed interest rates.

For additional information, refer to Note 6, Debt, in the audited consolidated financial statements within the 2022 Annual Report.

Long-Term Promissory Note

In July 2003, Air Wisconsin financed a hangar through the issuance of $4,275 City of Milwaukee, Wisconsin variable rate Industrial Development Bonds. The bonds mature November 1, 2033. Prior to May 1, 2006, the bonds were secured by a guaranteed investment contract, which was collateralized with cash, and interest was payable semiannually on each May 1 and November 1. In May 2006, Air Wisconsin acquired the bonds using the cash collateral. The bonds are reported as long-term investments on the condensed consolidated balance sheets. The hangar is accounted for as a right-of-use asset with a value of $2,373 and $2,547 as of September 30, 2023 and December 31, 2022, respectively.