Pemco World Air Services, a leader in MRO and Conversion Services, has filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code in the Bankruptcy Court for the district of Delaware. The Company expects to quickly restructure and emerge as a stronger and more viable business. The process will allow Pemco to improve its cost and capital structure, essentially positioning the Company more competitively in the marketplace and allowing it to continue to provide outstanding service to its customers. During the restructuring, the Company will continue to operate in the normal course of business, without interruption.
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 that its operations will emerge from bankruptcy within the next 90 days. To meet this accelerated timeline, Pemco will utilize Section 363 of the United States Bankruptcy Code and filed today with the Court a purchase agreement entered into with one of its current lenders, Avion Services Holdings. The Company is also commencing a marketing process to determine if there are other interested parties.
