Global Aviation secures approval of bid procedures; auction March 19

By Caroline Salls

Pittsburgh, Jan. 27 - Global Aviation Holdings, Inc. received court approval of the bid procedures for the proposed sale of its assets to secured lender Cerberus Business Finance, LLC, according to a Jan. 27 filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Cerberus has offered to sponsor a plan of reorganization as the stalking-horse bidder "to acquire the business through the purchase of the new equity of the reorganized debtors."

As an alternative to the plan term sheet, the proposed sale procedures include provisions for the sale of assets through an asset purchase agreement.

Under the bidding procedures, bids will be due by 5 p.m. ET on March 14.

The secured lender will be entitled to increase its stalking-horse bid by additional credit bid amounts up to the full amount of the debt owed by Global Aviation.

Competing bids must provide for the repayment of not less than $35 million of debt to the secured lender in cash at the closing of the asset sale or plan.

If one or more competing bids are received, the auction will be held on March 19. Bids at auction must be made in minimum increments of $100,000.

A hearing on confirmation of the winning bid and approval of the company's disclosure statement is scheduled for March 25.

Global Aviation, a Peachtree City, Ga.-based provider of charter air transportation for the U.S. military and of commercial global passenger and cargo air transportation services, filed for bankruptcy on Nov. 12. The Chapter 11 case number is 13-12945.

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