AeroCentury Corp. Files Proposed Plan of Reorganization
22 Junio 2021 - 6:00PM
AeroCentury Corp. (“AeroCentury” or the “Company”) (NYSE American:
ACY), announced today that the Company and its two U.S.
subsidiaries (collectively the “Debtors”) have filed with the
Delaware Bankruptcy Court a proposed combined Plan of
Reorganization and Disclosure Statement (the “Plan/Disclosure
Document”) with respect to its proposed plan to exit Chapter 11
bankruptcy protection (“Plan”). The proposed plan was filed in
connection with the Company’s motion to approve a Solicitation
Procedures Order, which, among other things, requests that the
Court conditionally approve the combined Plan/Disclosure Document
for solicitation purposes only and authorize the Debtors to solicit
votes to accept or reject the Plan. The Bankruptcy Court has set a
hearing date of July 12, 2021 to hear the proposed motion and to
consider approval of the Solicitation Procedures Order
“The filing of our proposed combined plan and
disclosure statement and the request for approval of our claimant
vote procedures represent further milestones towards the Company’s
emergence from Chapter 11,” explained Michael Magnusson, President
of the Company. “Discussions with potential plan sponsors are
ongoing, and this filing allows us to keep on track for a timely
exit from bankruptcy, while also providing the time needed for the
careful consideration of potential debt and/or equity investment
terms that are being presented to the Company.”
The proposed Plan/Disclosure Document
contemplates two potential paths to the Debtors’ emergence from
bankruptcy. The first is the Sponsored Plan scenario that is
dependent upon the Company finding a suitable plan sponsor (“Plan
Sponsor”) that would enter into a Plan Sponsor Agreement with the
Company to operate the Debtors’ businesses on a go-forward basis
and relaunch the Debtors’ aircraft acquisition, leasing, and
disposition operations using capital to be provided by the Plan
Sponsor. The Company has not yet entered into any agreement with a
Plan Sponsor. The second path is the Stand-Alone Plan scenario,
which will occur if a Plan Sponsor is not found or an acceptable
Plan Sponsor Agreement is not reached with a Plan Sponsor. Under
the Stand-Alone Plan, the Debtors’ remaining assets will be
monetized for the benefit of their stakeholders.
The Company has proposed that if an acceptable
Plan Sponsor is found and a Plan Sponsor Agreement is entered into,
the Company will disclose the identity of the Plan Sponsor and the
terms of such Plan Sponsor Agreement in a Plan Supplement to be
filed with the Court prior to the vote on the proposed Plan. The
Company further proposes that if a Plan Sponsor Agreement is not
executed by the voting deadline, the Plan will proceed on the
Stand-Alone Plan scenario.
Solicitation of the plan is expressly subject to
approval by the Delaware Bankruptcy Court and has not yet occurred.
This press release is not a solicitation of votes to accept or
reject the proposed Plan/Disclosure Document or an offer to sell or
exchange securities of the Company. Any solicitation of votes or
offer to sell or exchange or solicitation of an offer to buy or
exchange any securities of the Company will be made only pursuant
to, and in accordance with, the final Plan/Disclosure Document as
and when approved by the Bankruptcy Court. Copies of the proposed
Plan/Disclosure Document and the proposed Solicitation Procedures
Order, as well as all other Bankruptcy Court filings and other
information related to the Chapter 11 Case are available at a
website administered by the Company’s noticing and claims agent,
Kurtzman Carson Consultants LLC, at
https://www.kccllc.net/aerocentury. The above description of the
proposed Plan is a summary only and is qualified in its entirety by
reference to the full text of the Plan available from such sources,
and is subject to further revision.
About AeroCentury: AeroCentury
is an independent global aircraft operating lessor and finance
company specializing in leasing regional jet and turboprop aircraft
and related engines. The Company's aircraft are leased to regional
airlines and commercial users worldwide.
This press release contains forward-looking
statements within the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995. All statements in this
press release other than statements that are purely historical are
forward-looking statements. Forward-looking statements in this
press release include statements regarding the Company’s plans to
exit Chapter 11 through either the Sponsored Plan scenario or the
Stand-Alone Plan scenario, and the Company’s ability to find a Plan
Sponsor or enter into a mutually-agreeable Plan Sponsor Agreement.
The forward-looking statements in this press release and the
Company’s future results of operations are subject to additional
risks and uncertainties set forth under the heading “Factors that
May Affect Future Results and Liquidity” in documents filed by the
Company with the Securities and Exchange Commission, including the
Company's quarterly reports on Form 10-Q and the Company’s latest
annual report on Form 10-K, and are based on information available
to the Company on the date hereof. In addition, such risks and
uncertainties include the Company’s inability to predict or control
bankruptcy proceedings, the risk of the Company’s failure to find a
Plan Sponsor or enter into a Plan Sponsor Agreement on favorable
terms, or at all, and the uncertainties surrounding the ability to
generate cash proceeds through the sale or other monetization of
the Company’s assets. The Company does not intend, and assumes no
obligation, to update any forward-looking statements made in this
press release. Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date of this
press release.
Hal LyonsChief Financial Officer(650) 340-1888
Aerocentury (AMEX:ACY)
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