Ravn Air Group files plan of liquidation to distribute trust assets

By Caroline Salls

Pittsburgh, April 27 – Ravn Air Group, Inc. filed a plan of liquidation and related disclosure statement on Monday with the U.S. Bankruptcy Court for the District of Delaware.

According to the disclosure statement, the plan calls for the creation of a liquidation trust, which will own the Ravn debtors’ assets, including their interests in aircraft and related properties, and will sell those assets to generate cash to be distributed to holders of liquidation trust interests.

The trust will also own litigation claims against third parties and may generate cash through prosecution or settlement of those claims.

Under the plan, administrative claims, professional fee claims, priority claims, tax claims and other secured claims will be paid in full.

Holders of debtor-in-possession financing claims will receive class A liquidation trust interests.

Holders of post-bankruptcy secured claims will receive class B liquidation trust interests.

Holders of general unsecured claims will receive a share of a creditors’ fund.

Holders of equity interests and subordinated claims will receive no distribution.

Ravn is an Anchorage-based airline company. The company filed bankruptcy on April 5 under Chapter 11 case number 20-10755.

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