North American Airlines Chapter 11 Bankruptcy Sale
Represented Global Aviation Holdings Inc. and its subsidiary, North American Airlines, Inc., in the sale of the assets of North American Airlines, Inc. as a debtor in Chapter 11 to Omni Aviation International, Inc. for approximately $11 million plus earnout.
Represented The Bank of New York as agent for the first lien lenders in this Chapter 11 case in the Southern District of New York. Successfully defeated efforts by the Debtor and junior lienholders to effect a cramdown valuation of the agent’s collateral at $70 million. After a hotly contested evidentiary trial, the efforts by Wellman and the junior lienholders failed and the court found the value of the agent’s collateral to be $140 million - two times the amount proposed by the debtor and junior lienholders.
MAIR Holdings, Inc.- Mesaba Airlines, Inc. and Northwest Airlines, Inc.
Out-of-court litigation and r
epresentation of airline holding company, MAIR Holdings, Inc. in connection with the sale of stock of Mesaba Airlines, Inc. to Northwest Airlines, Inc., as part of the Chapter 11 cases of both airlines.
Debtor Representation - Atlas Air Worldwide Holdings, Inc.
Completed the successful restructuring of this company’s financial affairs, including restructuring more than $2.5 billion of debt in a bankruptcy case that was completed in only six months. Significant achievements in this case included restructuring the company’s enhanced equipment trust certificates (the first time this has ever been accomplished in a Chapter 11 case), restructuring all of the company’s leveraged leases and financed aircraft, effectuating the substantial buildup of cash during Chapter 11, and effectuating a rights offering of new common stock to creditors pursuant to the Chapter 11 plan. Atlas operated in Europe, the Middle East, and Asia and the reorganization involved coordination with numerous foreign jurisdictions and regulatory authorities.
Representation of Debtor - First Plus Financial
Represented this major financial services enterprise that specialized in the origination, securitization, and servicing of high loan to value consumer loans. Assets totaled more than $3 billion.
Representation of Creditors’ Committee - Finance
Our attorneys represented the Creditors’ Committee in the Chapter 11 case of Empire Funding that specialized in the origination, securitization and servicing of almost $4 billion of high loan-to-value consumer loans.
Debtor-in-Possession Representation - Pentacon
Represented Pentacon and its affiliates in their successful reorganization in Chapter 11. Pentacon is a worldwide distributor of C-Class components to the aerospace industry and provided “just in time” inventory management services to industrial and aerospace companies.
Chapter 11 Debtor Representation - Drypers Corporation
Represented this debtor-in-possession which was a major manufacturer of diaper products worldwide. The company was unable to reorganize and adopted a liquidating plan. We conducted a sale of four separate subsidiaries of the company through the bankruptcy auction process to separate buyers for U.S., South American, Puerto Rican and Malaysian operations.
Bankruptcy Preparation - Airline
Represented major airline in the representation of several other major air carriers. Also advised major airline management regarding its use of bankruptcy as a means of resolving its difficult labor situation.
Representation of Debtor - ATA Corporation
Represented this national certificated air carrier in its orderly Chapter 11 liquidation in the bankruptcy court in Indianapolis, Indiana. The case involves significant issues relating to the status of union contracts and WARN Act claims in airline liquidations.
FX Luxury Las Vegas, LLC - Bankruptcy
Representation of second lien agent and certain second lien (junior) lenders in the FX Luxury Las Vegas I, LLC bankruptcy case in the Las Vegas, Nevada bankruptcy court. Successfully obtained ownership for the firm's clients of a seventeen-acre property located on the Las Vegas strip across from City Center.