Global Aviation statement OK'd; plan hearing scheduled for Nov. 28

By Caroline Salls

Pittsburgh, Oct. 22 - Global Aviation Holdings Inc.'s disclosure statement was approved on Friday by the U.S. Bankruptcy Court for the Eastern District of New York.

The plan of reorganization hearing is scheduled for Nov. 28.

The company's plan calls for a $168 million reduction of funded debt, the disclosure statement said.

Treatment of creditors under the proposed plan will include the following:

• Holders of priority non-tax claims will be paid in full in cash;

• Holders of senior secured claims will receive a share of the remaining first-lien loan after satisfaction of DIP loan claims and roll-up claims, $40 million in new second-lien debt with a five-year term and a 3% interest rate with an option for payment in cash or in kind and either 75% of the new common stock of reorganized Global Aviation or, or, to the extent required by federal regulatory requirements, and for non-U.S. citizens only, a newly established class of new common stock or warrants;

• Holders of other secured claims will either be paid in full in cash, receive the collateral securing their claims or receive other treatment that renders the claims unimpaired;

• Holders of second-lien claims, general unsecured claims and intercompany claims will receive no distribution;

• Intercompany interests will be reinstated; and

• All equity interests in Global Aviation will be cancelled and discharged on the plan effective date, and equityholders will receive no distribution.

Global Aviation is a Peachtree City, Ga.-based provider of charter air transportation for the U.S. military and of commercial global passenger and cargo air transportation services. The company filed for bankruptcy on Feb. 5, 2012 under Chapter 11 case number 12-40783.

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