Lawyer: Former Pemco close to deals to pave way for plan confirmation

By Jim Witters

Wilmington, Del., Feb. 22 - WAS Services, Inc., formerly Pemco World Air Services, Inc., received approval for one agreement and is near completion of two others that should open the path to confirmation of a Chapter 11 plan in March, debtors attorney Robert S. Brady said during a Feb. 22 hearing in the U.S. Bankruptcy Court for the District of Delaware.

The debtors were prepared for a Dec. 19 confirmation hearing on their Chapter 11 plan of liquidation, but three administrative claims arose, necessitating a delay, Brady said.

The claim approved during the hearing calls for Alcoa-SIE Cargo Conversions, LLC to receive an allowed administrative claim of $117,746 and a general unsecured claim of $275,000.

The agreement settles Alcoa's $392,746 administrative claim, and WAS has the money for the administrative claim allotted in its proposed wind-down budget, Brady said.

Still pending are a $5 million administrative claim filed by former Pemco workers under the Worker Adjustment and Retraining Notification Act and an unspecified administrative claim.

Brady said the debtors and the WARN claimants have reached agreement in principle and are drafting a stipulation for consideration by the court.

The third claimant's counsel is awaiting approval from his client on a proposed settlement, Brady said.

If the two remaining settlements come to fruition, WAS will seek confirmation of its plan on or about March 20, he said.

Tampa, Fla.-based Pemco performs large jet maintenance and repair services. It filed for bankruptcy on March 6, 2012 under Chapter 11 case number 12-10799.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.