Southern Air granted four-month extension of plan exclusive periods

By Jim Witters

Wilmington, Del., Feb. 12 - Southern Air Holdings, Inc. won a 120-day extension of its exclusive periods for filing a Chapter 11 plan and for soliciting plan acceptances, according to documents filed Feb. 12 with the U.S. Bankruptcy Court for the District of Delaware.

The company's exclusive period for filing a Chapter 11 plan is extended through May 28 from Jan. 28. The exclusive period for soliciting votes on the plan is extended through July 25 from March 27.

Southern Air said it needs the additional time to "facilitate an orderly and cost-effective plan process for the benefit of all creditors by providing the debtors with a meaningful opportunity to build on the progress that has been made in these Chapter 11 cases without unnecessary interference from non-debtor parties."

"Termination of the exclusive periods, on the other hand, would give rise to the threat of competing plans, resulting in increased administrative expenses that would diminish the value of the debtors' estates to the detriment of creditors," the company said in seeking the extensions.

As previously reported, the company filed its second amended joint plan of reorganization on Jan. 18.

Southern Air, a Norwalk, Conn.-based cargo carrier, filed for bankruptcy on Sept. 28. Its Chapter 11 case number is 12-12690.

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