AeroCentury (AeroCentury) has announced that the company and its two U.S. subsidiaries (collectively the debtors) have filed with the Delaware Bankruptcy Court a proposed combined Plan of Reorganization and Disclosure Statement with respect to its proposed plan to exit Chapter 11 bankruptcy protection. The proposed plan was filed in connection with the company's motion to approve a Solicitation Procedures Order, which, among other things, requests that the court conditionally approve the combined plan/disclosure Ddocument for solicitation purposes only and authorize the debtors to solicit votes to accept or reject the plan. The Bankruptcy Court has set a hearing date of July 12, 2021 to hear the proposed motion and to consider approval of the Solicitation Procedures Order.
The proposed plan/disclosure document contemplates two potential paths to the debtors' emergence from bankruptcy. The first is the sponsored plan scenario that is dependent upon the company finding a suitable plan sponsor that would enter into a plan sponsor agreement with the company to operate the debtors' businesses on a go-forward basis and relaunch the Debtors' aircraft acquisition, leasing, and disposition operations using capital to be provided by the plan sponsor. The company has not yet entered into any agreement with a plan sponsor. The second path is the stand-alone plan scenario, which will occur if a plan sponsor is not found or an acceptable plan sponsor agreement is not reached with a plan Sponsor. Under the stand-alone plan, the debtors' remaining assets will be monetized for the benefit of their stakeholders.
The company has proposed that if an acceptable plan sponsor is found and a plan sponsor agreement is entered into, the company will disclose the identity of the Plan Sponsor and the terms of such plan sponsor agreement in a plan supplement to be filed with the court prior to the vote on the proposed plan. The company further proposes that if a plan sponsor agreement is not executed by the voting deadline, the plan will proceed on the stand-alone plan scenario.
