iAero Tech: U.S. trustee objects to bid protections for stalking horse

By Sarah Lizee

Olympia, Wash., March 14 – The U.S. trustee overseeing the case of Aerotech Miami Inc., which does business as iAero Tech, filed a limited objection to the proposed bid protections the company wants to offer to stalking horse bidder Eastern 737 Asset Holdings LLC, according to documents filed Thursday with the U.S. Bankruptcy Court for the Southern District of Florida.

The purchase price under the proposed agreement with Eastern is $71.2 million. The debtor is seeking approval to provide a $2.25 million breakup fee.

Region 21 U.S. trustee Mary Ida Townson said the breakup fee, as well as the proposed $250,000 overbid amount, is excessive.

“Requiring an initial competing bid to be at least $2,250,000 higher than the proposed offer, which is comprised of entirely assumed liabilities does not benefit the estate and is a great hurdle for any interested buyer to overcome to obtain the assets and may have a chilling effect upon other potential bidders,” Townson said in the objection.

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, 2023 under case number 23-17503.

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