The management team lost creditor’s confidence following failed DIP loan negotiations with its senior secured lender and missed critical bankruptcy filings. The unsecured creditor base included two international airlines — one based in Pakistan and another in Ukraine — heightening complexity and urgency.
Action:
- Executive Realignment: Reassigned the CEO and appointed a new President to restore leadership and credibility.
- Cash Control: Took direct control of all cash disbursements, restricted bank access, and completed DIP loan funding.
- Operational Stability: Reestablished direction for an 80+ person workforce, preserving key customer relationships.
- Strategic Transaction Execution: Developed sale materials, marketed the businesses and assets, and negotiated stalking horse bids for both companies and five aircraft.
- Forensic Review & Claims Management: Investigated prior management self-dealing and financial misstatements. Supported successful D&O insurance and auditor claim resolutions.
Outcome:
Assets were sold to the senior secured lender, the Pakistani airline, and an Afghan airline. D&O and Auditor claims repaid the senior lender in full and delivered meaningful recoveries to unsecured creditors.
brief description
Serving as Chapter 11 Trustee for Aircraft Maintenance, Repair and Overhaul and Parts company after stalled proceedings due to management’s lack of credibility
Industry: Aviation
