AeroCentury receives court approval of bid procedures for assets

By Sarah Lizee

Olympia, Wash., April 22 – AeroCentury Corp. received court approval of the bid procedures for substantially all of its assets, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the company proposed an auction sale for its assets in order to fund repayment of its debt to its sole secured lender, Drake Asset Management Jersey Ltd.

AeroCentury received court approval to enter into a stalking horse agreement with Drake to acquire the aircraft collateral securing the Drake debt. In the event Drake is the successful bidder, the closing of the purchase will resolve all of the company’s outstanding debt to Drake.

Under the bid procedures, bids are due by 5 p.m. ET on May 17, an auction, if needed, will be held on May 20, and a sale hearing will be held on May 25.

AeroCentury is an aircraft operating lessor and finance company based in Burlingame, Calif. The company filed bankruptcy on March 29 under Chapter 11 case number 21-10636.

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