Global Aviation Holdings gets final approval of $45 million DIP loan

By Caroline Salls

Pittsburgh, March 30 - Global Aviation Holdings Inc. received final court approval of its $45 million debtor-in-possession financing facility, according to a Friday filing with the U.S. Bankruptcy Court for the Eastern District of New York.

As previously reported, holders of the company's first-lien notes are providing the DIP facility in exchange for additional liens on some of the company's assets.

Cantor Fitzgerald Securities is the DIP agent.

Lenders include IN-FP2 LLC, Guggenheim Investment Management, LLC, Beach Point Capital Management LP and Chatham Credit Management III, LLC.

The facility will mature on the earliest of repayment in full in cash of all loans and obligations, six months from the closing date, subject to a two-month extension, and the date of any termination or acceleration of the loans.

Interest will be either the alternate Base rate plus 900 basis points with a 3% floor or Libor plus 1,000 bps with a 2% floor.

Under the final DIP financing order, for every $1 of DIP loans that a lender has loaned and committed to under the DIP facility as of April 27, $1 of senior secured notes held by that DIP lender will be converted into roll-up notes.

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. Its Chapter 11 case number is 12-40783.

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