Completion and refurbishment specialist Pats Aircraft Systems, has executed the final steps in a restructuring agreement with its lenders that formally establishes the Georgetown, Del.-based center as “a fully capitalized, stand-alone company with a significantly reduced debt structure.”
As part of the restructuring, holders of Pats senior debt receive 100 percent of the available equity in exchange for reducing their debt amount. According to Pats, the move is “transparent to all business operations and will have no impact on trade creditors, suppliers, customers and employees.”
Private investment funds managed by Wayzata Investment Partners, a Minnesota-based, private-equity firm, now own a majority of the equity in Pats. The board of directors consists of Roger Wolfe, former CEO of DeCrane Aerospace; Daniel McHugh, CEO of Southern Air; Joseph Deignan and Matthew Scliep, both of Wayzata Invest Partners; and John Martin, president and CEO of Pats.
“We are pleased by the strong support from Wayzata and for this consensual restructuring, which improves our balance sheet, reduces debt and interest obligations, and enables continued reinvestment in our products and future growth,” said Martin.