Voyager Aviation’s Chapter 11 plan effective as of April 5

By Sarah Lizee

Olympia, Wash., April 8 – Voyager Aviation Holdings, LLC’s amended Chapter 11 plan went into effect on Friday, according to a notice filed with the U.S. Bankruptcy Court for the Southern District of New York.

The plan was confirmed on March 22, as previously reported.

The debtors began their Chapter 11 cases with the goal of selling their principal aircraft fleet to Azorra Explorer Holdings Ltd., an affiliate of Azorra Aviation Holdings, LLC, which was negotiated prepetition.

The plan contemplates the continued distribution to creditors of the proceeds of the completed aircraft sales under the Azorra sale transaction.

Two aircraft, the debtors’ other principal assets, have been detained in Russia since the Russia/Ukraine war. The debtors worked with their advisers to monetize those assets to enhance recoveries for the debtors’ stakeholders.

But the significant amount of debt secured by both the detained aircraft and their insurance proceeds and the costs of pursuing the litigation to recover on those insurance policies made the costs and risk of recovery too high and the value proposition for the debtors’ estates too low, the company said.

The debtors later determined that the best path forward was to turn over the detained assets and related insurance collateral to the secured parties through a consensual foreclosure in full satisfaction of the aircraft finance insurance consortium parties’ claims against the debtors’ estates.

Other secured claims, priority non-tax claims, aircraft financing facility claims against aircraft selling debtors and general unsecured claims against aircraft selling debtors are unimpaired under the plan.

Aircraft financing facility insurance guarantee claims, secured note claims, convenience/go-forward trade claims, general unsecured claims against other debtors, general unsecured claims against participation debtors, section 510(b) claims, Cayenne preferred interests and VAH interests are impaired.

Holders of secured note claims will receive a pro rata share of remaining distributable assets of each debtor liable on the secured note claims.

The Stamford, Conn.-based aviation investment firm and commercial aircraft leasing company filed bankruptcy on July 27, 2023 under Chapter 11 case number 23-11177.

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