iAero Group Initiates Bankruptcy Auction Process with Minimum Bid of $216.3 Million
iAero Group Parent LLC, the parent company of charter carrier iAero Airways, has sought court permission for a bankruptcy auction in early December, setting a minimum purchase price of $216.3 million. The application was filed in the US Bankruptcy Court of the Southern District of Florida on September 19, as part of the Chapter 11 bankruptcy protection process.
The bankruptcy filing allows iAero Group to continue operations, supported by debtor-in-possession financing of approximately $22.5 million from senior lenders. An expedited motion filed by iAero Tech on October 3 proposes an auction with a final bid deadline on December 1, the auction scheduled for December 6, and a hearing to approve the sale on December 13.
Qualified bids must include a minimum cash offer of $216,294,059, covering claims by aircraft financier Synovus and pre-petition Synovus aircraft term loan claims.
The debtors, which include iAero Airways, iAero Tech, and iAero Thrust, entered into a restructuring support agreement (RSA) with secured lenders before filing for Chapter 11 protection. The RSA outlines two potential scenarios for restructuring:
- Sale of all or substantially all assets in a single bid or multiple offers.
- Reorganization plan where certain lenders exchange a portion of their debt for equity in the reorganized companies and receive new secured claims. This option will be pursued if the auction scenario does not yield qualified bids.
The court hearing on October 16 will determine the approval of bidding procedures and preparation for the auction, providing crucial steps in iAero Group’s bankruptcy proceedings.