MD Helicopters structured dismissal procedures approved by court

By Sarah Lizee

Olympia, Wash., Jan. 6 – MD Helicopters, Inc. received approval of the procedures for its structured case dismissal, according to an order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

The final fee application deadline is 11:59 p.m. ET on Jan. 20, based on a final fee period that ends Jan. 10.

Objections to final fees are due by 4 p.m. ET on Feb. 10.

Final fee supplements for work through Feb. 7 should be filed by 11:59 p.m. ET on Feb. 10.

Objections to the supplements are due by 4 p.m. ET on Feb. 17.

The hearing for the final fees would be held on Feb. 28.

Actual fees and expenses after the supplement period are due by March 7.

The company will file all monthly reports, pay all quarterly fees and pay professional fees. When the company has satisfied these dismissal conditions, it will file the dismissal order with the court.

All contracts and leases will be rejected on the date of entry of the dismissal order.

After the dismissal order is entered, the debtors will be allowed to dissolve their corporate entities in accordance with applicable state laws.

MD Helicopters has one claim outstanding that will be satisfied, filed by the U.S. Customs and Border Protection.

There is ongoing litigation in the Netherlands regarding a $42,912,407 secured claim against the debtors with an ongoing appeal in the Third Circuit Court of Appeals.

The debtors have no funds available to satisfy the general unsecured claims that remain outstanding as the sale process, closed on Aug. 15, did not generate enough proceeds to satisfy additional outstanding claims.

This includes the $207 million of pre-petition loans that remain outstanding.

A dismissal of the Chapter 11 cases is preferable for the debtors to a case conversion to Chapter 7 as there would only be additional expenses, but no apparent benefit.

The Mesa, Ariz.-based helicopter manufacturer filed Chapter 11 bankruptcy on March 30, 2022 under case number 22-10263.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.