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Current decisions, news and commentary regarding commercial bankruptcy cases in Delaware.
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Pemco World Air Services, Inc. Files for Chapter 11 Protection
On March 5, 2012, Pemco World Air Services, Inc. (“Pemco”) and two affiliates, WAS Aviation Services Holding Corp. (“WAS Holding”) and WAS Aviation Services, Inc. (“WAS Inc.,” collectively with WAS Holding, the “Debtors”) filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware. The petition lists both assets and liabilities between $50 million to $100 million. The case has been assigned to Judge Mary F. Walrath and is being administered under case number 12-10799 (MFW).
According to the first-day Declaration of Benjamin B. Ward, the Chief Financial Officer of the Debtors, in Support of First Day Motions (the “Declaration”), Pemco is a wholly-owned subsidiary of WAS Inc., which is a wholly-owned subsidiary of WAS Holding. WAS Holding is 85.08% owned by Sun Aviation Services, LLC (“Sun Aviation”), which is not a debtor in these cases. In addition, Pemco is the 100% owner of Pemco World Air Services (Canada) Inc. (“Pemco Canada”), a Canadian entity also not involved in the bankruptcy cases.
The Declaration goes on to assert that the Debtors are an industry leader in maintenance, repair, and overhaul for wide and narrow body aircraft and regional jets from around the world, and are the world’s leading provider of narrow body aircraft cargo conversions. The downturn in the global economy, unprecedented volatility in the global credit markets, increased competition, and increasing material costs all adversely affected the Debtors’ operations and led to the bankruptcy filing, according to the Declaration.