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AeroCentury plan of reorganization draws objection from U.S. trustee
By Sarah Lizee
Olympia, Wash., July 7 – AeroCentury Corp.’s Chapter 11 plan of reorganization drew an objection from Regions 3 and 9 U.S. trustee Andrew R. Vara, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.
The debtors have filed a plan that proposed two potential paths to their emergence from bankruptcy, including a stand-alone plan and a sponsored plan.
Under the stand-alone plan, the debtors’ remaining assets will be monetized and interest holders will receive their pro rata share of the post-effective date debtor assets, after paying all creditors in full.
Under the sponsored plan, however, interest holders will not know what they receive until the debtors file the plan sponsor agreement. The treatment may be cash, reinstatement of the allowed interests, reinstatement subject to dilution, or a combination of these. In this case, a plan supplement detailing the recovery will be filed seven days prior to the voting and objection deadline.
“The proposed combined plan and disclosure statement does not contain the most important information interest holder need to determine whether to vote to accept or reject the plan: what they will receive and when they will receive it,” Vara said in his objection.
“Filing, and not serving, this critical information just seven days before the voting and objection deadline Is insufficient notice to interest holders, the only impaired class.”
AeroCentury is an aircraft operating lessor and finance company based in Burlingame, Calif. The company filed bankruptcy on March 29 under Chapter 11 case number 21-10636.
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