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.
About Brandy Chetsas
Brandy L. Chetsas is editor in chief at Bankrupt Company News. She joined New Generation Research, Inc. in 1998. As Director of Strategic Content, she leverages 20+ years of communications and project management experience for the distressed investing sector–with particular expertise on corporate restructurings via Chapter 11. Brandy began her career writing for a law enforcement-related publication and teaching English courses at numerous colleges in the U.S. and abroad.