After eight months in bankruptcy court, Global Aircraft Solutions Inc. is close to being sold to a major creditor under its reorganization plan.
A hearing on the Tucson aerospace company's bankruptcy reorganization plan, which proposes the sale, is scheduled for Oct. 13. The company filed for Chapter 11 bankruptcy reorganization last January, listing $12 million in debts and $4.6 million in assets.
Global is the holding company for Hamilton Aerospace Technologies Inc., World Jet Corp. and Hamilton Aerospace Mexico.
Last spring, the court approved debtor-in-possession financing submitted by the company. The revolving loan of up to $1 million was provided by the company's senior secured lender, Victory Park Credit Opportunities Master Fund Ltd., the buyer under the plan.
Victory Park, which has secured claims of more than $7 million, was to make a credit bid of $4.25 million for all Hamilton Aerospace Technologies assets and $1 million for all World Jet assets in a bankruptcy auction to end next week. The Hamilton Mexico subsidiary is long defunct.
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Global officials referred questions to the firm's court-appointed trustee, Frank Hundley. He declined to say whether the reorganization plan — which is still subject to a creditor vote and court approval — faces any major challenge. But he noted lenders have been cooperative and the aircraft-maintenance business continues.
"I would think the important thing is the bankruptcy plan that we have filed is designed to have both World Jet and Hamilton be viable, going concerns during and after the bankruptcy process so that jobs remain here and people remain employed," Hundley said, adding that the plan is also "to get the maximum value to creditors."
The work force of about 85 has remained about the same size through the bankruptcy and would be hired by Victory Park.
In March the board accepted the resignation of President John B. Sawyer. Dave Querio is now president. Querio previously served as vice president of sales and vice president of operations. Gordon D. "Dito" Hamilton, the son of Hamilton Aviation founder Gordon B. Hamilton, left the company over the summer.
Tucson Airport Authority spokeswoman Paula Winn Perino said the company is current on rent for its 35,000-square-foot hangar at Tucson International Airport. At the time of filing, a TAA official said the company was two months behind on its $46,000 monthly rent.
DID YOU KNOW
Gordon B. Hamilton founded Hamilton Aviation in Tucson in 1947. When the company filed for Chapter 11 bankruptcy in May 2002, it had more than 400 workers.
Global Aircraft Solutions formed Hamilton Aerospace Technologies Inc. to acquire the assets of Hamilton Aviation in a stock-for-stock exchange in 2002. Global acquired World Jet Corp., an aircraft-parts sales and brokerage firm, in 2004.
The company made news in September 2008, when it delivered an Embraer 190 regional jet it refitted and painted for the vice presidential campaign of former Alaska Gov. Sarah Palin.