Tucson: Global Aircraft Solutions Close to Exit Bankruptcy

CHAP. 11 REORGANIZATION PLAN

Global Aircraft looks to exit bankruptcy through buyout

By Enric Volante

ARIZONA DAILY STAR

After eight months in bankruptcy court, Global Air­craft Solutions Inc. is close to being sold to a major creditor under its reorganization plan.

A hearing on the Tucson aerospace company’s bank­ruptcy reorganization plan, which proposes the sale, is scheduled for Oct. 13. The company filed for Chapter 11 bankruptcy reorganization last January, listing $12 mil­lion in debts and $4.6 million in assets.

Global is the holding com­pany for Hamilton Aerospace Technologies Inc., World Jet Corp. and Hamilton Aero­space Mexico.

Last spring, the court ap­proved debtor-in-possession financing submitted by the company. The revolving loan of up to $1 million was pro­vided by the company’s sen­ior secured lender, Victory Park Credit Opportunities Master Fund Ltd., the buyer under the plan.

Victory Park, which has se­cured claims of more than $7 mil­lion, was to make a credit bid of $4.25 million for all Hamilton Aerospace Technologies assets and $1 million for all World Jet as­sets in a bankruptcy auction to end next week. The Hamilton Mexico subsidiary is long defunct.

Global officials referred ques­tions to the firm’s court-appoint­ed trustee, Frank Hundley. He de­clined to say whether the reorgan­ization plan — which is still sub­ject to a creditor vote and court approval — faces any major chal­lenge. But he noted lenders have been cooperative and the aircraft ­maintenance business continues.

“I would think the important thing is the bankruptcy plan that we have filed is designed to have both World Jet and Hamilton be viable, going concerns during and after the bankruptcy process so that jobs remain here and people remain employed,” Hundley said, adding that the plan is also “to get the maximum valueto creditors.”

The work force of about 85 has remained about the same size through the bankruptcy and would be hired by Victory Park.

In March the board accepted the resignation of President John B. Sawyer. Dave Querio is now president. Querio previously served as vice president of sales and vice president of operations. Gordon D. “Dito” Hamilton, the son of Hamilton Aviation founder Gordon B. Hamilton, left the company over the summer.

Tucson Airport Authority spokeswoman Paula Winn Peri­no said the company is current on rent for its 35,000-square­foot hangar at Tucson Interna­tional Airport. At the time of fil­ing, a TAA official said the com­pany was two months behind on its $46,000 monthly rent.

Contact reporter Enric Volante at 573-4129 or evolante@azstarnet.com