An auction for Ravn Air Group Inc. produced winning bids from seven parties for various assets of the private equity-backed regional air carrier.
The Anchorage debtor initially hoped to reorganize and then to sell its assets as a going concern. Instead, the winning bidders will split the assets of the liquidating operator of PenAir, RavnAir Alaska and RavnAir Connect for a total of $39.66 million.
According to court papers filed Thursday, July 9, Ravn named Wright Air Service Inc. the winner of four Cessna 208 aircraft and facilities in Barrow, Deadhorse, Galena and Fairbanks, Alaska, with a $12.8 million offer. Grant Aviation Inc. will pay $10.3 million for 15 Cessna 207 and 208 aircraft, parts inventory and a Bethel, Alaska, facility.
Tatonduk Outfitters Ltd., which does business as Everts Air Cargo and Everts Air Alaska, will purchase six Cessna 208s for $3.5 million. It also will pay a total of $2.08 million for three separate lots of facilities.
Bering Air Inc. will pay a total of $2.88 million for three lots of facilities, and Alaska Central Express Inc. will purchase Beech 1900C aircraft for $5.07 million.
Finally, YR-Leasing LLC will pay $1.49 million for 14 Cessna 207s, and Riverside Apartments LLC will pay $1.55 million for two facilities.
Judge Brendan Linehan Shannon of the U.S. Bankruptcy Court for the District of Delaware in Wilmington approved the Wright Air Service sale on Thursday, but orders for the other transactions had yet to be entered as of Friday afternoon.
Out of cash to fuel operations, Ravn landed in Chapter 11 on April 5 with the hopes of reorganizing with federal aid. The J.F. Lehman & Co. and W Capital Partners portfolio company, however, failed to secure funding under the CARES Act.
Founded in 1948, the company entered Chapter 11 on Dec. 28, 2005, as Era Aviation Inc. Ravn secured permission in October 2018 to acquire the assets of bankrupt Peninsula Airways Inc. for $12.3 million.
It filed again because of a liquidity crisis brought on by the Covid-19 pandemic.
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