Global Aviation seeks 90-day exclusivity extension to file plan

By Jim Witters

Wilmington, Del., Sept. 11 - Global Aviation Holdings Inc. is seeking a 90-day extension of its exclusive periods for filing a Chapter 11 plan of reorganization and for soliciting votes for the plan, according to documents filed Sept. 10 with the U.S. Bankruptcy Court for the Eastern District of New York.

The company says it needs the additional time because its efforts thus far have been focused on stabilizing the business and renegotiating union contracts.

"Since the filing of the first exclusivity motion, the debtors engaged in hard-fought, high stakes negotiations with their labor union representatives to reach an agreement on modifications to the debtors' collective bargaining agreements (the "CBAs"). The modifications to the CBAs, if approved and ratified, would pave the way for the debtors to propose a Chapter 11 plan and emerge as a competitive enterprise," the court filing states.

The negotiations resulted in proposed changes to the labor agreements with the International Brotherhood of Teamsters, the Air Line Pilots Association and the Transport Workers Union, "which will reduce the debtors' going-forward expenses by more than $100 million over five years and ensure the debtors' labor cost stability for the next five years," according to the filing.

Those collective bargaining agreements await court approval at a Sept. 12 hearing.

The changes to the labor agreements are contingent on the confirmation of a plan of reorganization, the company says.

If granted the motion would extend the exclusive period for filing a plan to Dec. 31 from Oct. 2 and the period for soliciting plan votes to March 1 from Dec. 3.

A hearing on the exclusivity extension is scheduled for 11 a.m. ET on Sept. 25.

Debtors' plan

According to court documents, Global Aviation hopes to follow this schedule:

• Sept. 12 - Ratification of modified CBAs by all unions;

• Sept. 15 - Filing date for Chapter 11 plan and disclosure statement;

• Oct. 17 - Disclosure statement hearing;

• Nov. 28 - Plan confirmation hearing; and

• Dec. 12 - Plan effective date.

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. Its Chapter 11 case number is 12-40783.

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