Western Global Airlines LLC is weighing options including filing for bankruptcy as it faces dwindling liquidity, according to people with knowledge of the matter.

The cargo airline began confidential talks with some of its creditors related to its financing needs last month, Bloomberg previously reported. A final decision hasn’t been made, and the situation could change. A representative for Estero, Florida-based Western Global declined to comment.

One of the smaller air cargo providers in the US, Western Global has been burning cash amid cooling demand. It’s been dealing with labor shortages that blocked the company from using certain routes to Asia, which led to soaring fuel costs, according to a March note from Moody’s Investors Service.

The company had $400 million in aircraft assets and a fleet of 21 aircraft as of September, according to Moody’s. All of the airline’s assets, however, are encumbered, limiting its ability to raise new financing.

Amid talks with creditors, Truist Financial Corp. has been seeking to sell the company’s first-lien term loan and revolver with a face value of about $115 million, people familiar with the efforts said. Truist, the agent on the loans, accepted a bid of about 40 cents on the dollar for the debt, the people added. The airline had defaulted on the loan earlier this year, they said.

A representative for Truist declined to comment.

Western Global’s 10.375% notes due 2025 are quoted at less than 10 cents on the dollar, data compiled by Bloomberg show.