Southern Air seeks four-month extension of plan exclusive periods

By Jim Witters

Wilmington, Del., Jan. 24 - Southern Air Holdings, Inc. is seeking a 120-day extension of its exclusive periods for filing a Chapter 11 plan and for soliciting plan acceptances, according to documents filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The company says 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 motion states.

As previously reported, the company filed its second amended joint plan of reorganization on Jan. 18. A hearing on the adequacy of the disclosure statement is scheduled for Jan. 29.

If the request is granted, the exclusive period for filing a Chapter 11 plan would be extended to May 28 from Jan. 28. The exclusive period for soliciting votes on the plan would be extended to July 25 from March 27.

A hearing to consider the request is scheduled for 10 a.m. ET on Feb. 25.

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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