iAero Tech gets final approval of DIP loan, bid procedures

By Sarah Lizee

Olympia, Wash., Oct. 17 – Aerotech Miami Inc., which does business as iAero Tech, received final approval of a $22.5 million debtor-in-possession facility, according to an order filed Monday with the U.S. Bankruptcy Court for the Southern District of Florida.

The financing is being provided by prepetition secured lenders including Synovus and certain Blackstone entities. Synovus is the administrative and collateral agent for the DIP facility.

Interest on the DIP financing is term SOFR+ 10 basis points CSA plus 400 bps per annum, paid monthly in arrears in cash.

The facility has an eight-month maturity.

Bid procedures

Also on Monday, the company received approval of bid procedures for its assets.

As background, the debtors and their prepetition secured lenders have negotiated a restructuring support agreement that provides for a dual-track process, through which the debtors will pursue a Chapter 11 plan of reorganization and engage in a process for a possible sale of the assets of the debtors.

Under the bid procedures, the final bid deadline is 5 p.m. ET on Dec. 1, an auction is scheduled for Dec. 6, and a sale hearing will take place on Dec. 13.

Miami-based iAero Tech operates a business-to-business air charter airline with a fleet of 42 passenger and cargo aircraft, servicing customers both domestically and internationally. The company filed Chapter 11 bankruptcy on Sept. 19 under case number 23-17503.

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