Global Aviation Holdings Conversion Sought


Global Aviation Holdings filed with the U.S. Bankruptcy Court a motion to convert its Chapter 11 reorganization case to a liquidation under Chapter 7. The motion explains, “Due to the efforts of the Debtors’ management during the past several months, the Omni Sale has been closed and consummated, all aircraft have been returned to lessors, all tangible assets and inventory located at the Debtors’ business locations have been liquidated, the Debtors’ business locations have been vacated and returned to lessors, and the significant majority of intangible assets, such as receivables, have been collected in accordance with the Forbearance Stipulation….Distributions to employees on account of the incentive plan have been finalized and distributions to healthcare providers on account of the Unpaid Healthcare Claims are in the progress of being made. The Debtors remaining books and records in physical and electronic form have been stored in a warehouse. As a result, there is very little left to administer in the Debtors’ estates, and the efforts needed to wind down the Debtor’s estates pursuant to the Forbearance Stipulation have largely concluded….The Debtors have ceased operations and substantially completed the wind-down of their affairs. In Addition, the Debtors will lack access to cash collateral with which to pay expenses beyond mid-September 2014. The Debtors therefore believe that conversion of the Chapter 11 case to cases under Chapter 7 is necessary to minimize any Chapter 11 administrative expense obligations.” The Court scheduled a September 11, 2014 hearing to consider the motion.

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