Global Aviation inks cash use and U.S. claims stipulations

By Caroline Salls

Pittsburgh, July 3 – Global Aviation Holdings Inc. entered a stipulation with debtor-in-possession financing agent Cerberus Business Finance, LLC that allows the company to continue to use cash collateral beyond July 4 to continue its wind-down efforts, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

In addition, Global Aviation requested court approval of a claims stipulation reached with the United States.

The company said its debtors agreed before the bankruptcy filing date to provide services to the United States of America and some of its agencies, including the Department of Defense through the U.S. Transportation Command, the Defense Finance and Accounting Service and the Defense Logistics Agency-Energy, the U.S. Customs and Border Protection, the Army and Air Force Exchange Service and the Federal Aviation Administration.

In addition, the debtors purchased fuel from the United States for use in providing services to the government.

Global Aviation said the United States owes its World debtor a pre-bankruptcy net amount of $3.65 million and its North American debtor the pre-bankruptcy net amount of $1.09 million, in addition to $191,748 owed for a North American penalty claim.

Meanwhile, the United States owes World a $1.9 million post-filing net amount and North American a $1.07 million post-filing net amount.

Under the stipulation, the pre-bankruptcy World claims will be allowed as secured claims in the total amount of $3.17 million; the pre-bankruptcy North American claims will be allowed as a secured claim in the amount of $220,933 and as an unsecured claim in the amount of $1.09 million.

Also under the stipulation, the United States can offset specified amounts, resulting in a $3.65 million balance due to World for a pre-bankruptcy payable and a $220,933 balance for a pre-bankruptcy North American payable.

The post-filing World payable will be offset, reducing the balance of the post-filing World and North American claims.

Global Aviation, 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, filed for bankruptcy on Nov. 12, 2013. The Chapter 11 case number is 13-12945.

© 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.