US' Pemco World Air Services announced (05-Mar-2012) it has filed a voluntary petition under Chapter 11 of the US Bankruptcy Code in the Bankruptcy Court of Delaware. The company expects to "quickly restructure and emerge as a stronger and more viable business". The carrier noted its "operations have been impacted in recent years by a number of conditions, including a slowdown in the number and magnitude of MROs, a decrease in airplane conversions in Dothan, and the overall impact of the economic downturn”. The bankruptcy process will "allow Pemco to improve its cost and capital structure, essentially positioning the Company more competitively in the marketplace". During the restructuring, the company will continue to operate in the normal course of business, without interruption. To that end, Pemco has secured a debtor-in-possession (DIP) financing from Avion Services Holdings, an affiliate of Sun Capital Partners. The DIP financing will provide the company with sufficient working capital to continue to meet its ongoing obligations and payments to employees and suppliers throughout the process. Pemco anticipates its operations will emerge from bankruptcy within the next 90 days. To meet this accelerated timeline, Pemco will utilise Section 363 of the US Bankruptcy Code, filing with the Court a purchase agreement entered into with one of its current lenders, Avion Services Holdings, LLC. The company is also commencing a marketing process to determine if there are other interested parties. The company also announced that it is reviewing its options at its Dothan facility and anticipates a decision will be made shortly regarding the potential for a prompt closure of the facility. [more - original PR]
Pemco World Air Services enters Chapter 11 to facilitate restructuring
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