US carrier IAero Airways is pursuing a stalking horse asset sale agreement involving Eastern 737 Asset Holdings, an affiliate of Eastern Airlines, court documents show.
IAero, currently in Chapter 11 bankruptcy protection, owns a fleet of 23 Boeing 737-family aircraft, including two 737-800s, four 737-300s (including one 737-300SF) and the remainder 737-400s, according to Airfinance Journal's Fleet Tracker.
The purchase price for the assets is estimated at $71.2 million. They will be sold to Synovus Bank. Additionally, Eastern requires certain bid protections to serve as the stalking horse, including a break-up fee of $2.25 million to be paid by a third-party bidder in connection with any qualified overbid to the extent the stalking horse is not the successful purchaser.
The proposed sale would then result in Synovus Bank releasing their liens on the purchased assets with debt agreements entered into by the buyer, including a $49.2 million term loan facility, $22 million term loan facility, $17.5 million new money commitment revolving credit facility and an amendment to an existing credit facility between Synovus and Eastern Air Line Holdings.
The debtors have extended the final bid deadline until 28 March; however, in accordance with the bidding procedures, the debtors will continue to solicit higher or otherwise better proposals from third parties for the assets.
Update: Unsecured creditors have voiced objections to the proposed sale of US charter carrier IAero Airways’ assets, court filings reviewed by Airfinance Journal show.
