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Lockwood International Sale, Seal Approval Sought

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Lockwood International filed with the U.S. Bankruptcy Court a motion to sell aircraft free and clear of liens as described in Section 363(f).

The sale motion explains, “By this Motion, the Debtors seek entry of an order, authorizing the Debtors, inter alia, to (a) perform under (i) the Aircraft Purchase Agreement (the ‘APA’), between Aviation and the  potential purchaser (the name of which is confidential, but is contained in the unredacted  documents provided to the Court, the U.S. Trustee, WFEF, and the Committee) (the ‘Purchaser’), under which Aviation will transfer the Aircraft to the Purchaser for the sale price of $14,000,000, free and clear of the Aircraft Leases and all liens, claims, and encumbrances; (b) incur and pay certain costs and expenses under the APA and any taxes relating to the Aircraft; (c) pay jetAVIVA its broker fee and reasonable expenses; (d) pay the net sale proceeds to WFEF in full and final satisfaction of the WFEF Liens, the Aircraft Loan and any pre-petition and post-petition claims of WFEF and Wells Fargo regarding or relating to the Aircraft; and (e) assume and assign certain executory contracts pursuant to 11 U.S.C. section 365 relating to the Aircraft (collectively,  the ‘Aircraft Sale Transaction’)

A portion of the Purchase Price will be used (a) to pay jetAVIVA the broker fee (2% of the $14,000,000 purchase price) and expenses contemplated under the engagement agreement approved by the Court in the jetAVIVA Retention Order, (b) to pay costs and expenses under the APA and any taxes relating to the Aircraft; and (c) pay the net sale proceeds to WFEF in full and final satisfaction of the WFEF Liens, the Aircraft Loan and any pre-petition and post-petition claims of WFEF and Wells Fargo regarding or relating to the Aircraft. WFEF has recently asserted that it has a claim secured by the Aircraft in the amount of at least $13,834,059.98 as of May 2, 2018.” The Court scheduled a May 14, 2018 hearing to consider the sale motion.

The Debtors separately filed with the Court a stipulation and agreed order extending the deadline to consummate the sale of certain Embraer Aircraft which notes, “The Parties hereby stipulate and agree as follows: As authorized pursuant to the terms of the Stay Order, Debtors and WFEF hereby agree and stipulate that the Closing Deadline is hereby extended through and including June 6, 2018, without prejudice to further agreed extensions between the Parties or Debtors seeking a further extension of the Closing Deadline from the Court.” The Debtors also filed with the Court a motion to seal Exhibit B to aircraft sale motion, which notes, “The APA includes sensitive confidential information, including the name of the Purchaser.  The Purchaser has indicated to the Debtors that its willingness to proceed with the Aircraft Sale Transaction is contingent upon the name of the Purchaser being filed under seal.  It is customary in similar aircraft sale transactions outside of bankruptcy to not disclose such information.”

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The post Lockwood International Sale, Seal Approval Sought appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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