On Monday, JetDirect Aviation and JDA Acquisition Company (JDAAC) solidified an agreement for JDAAC’s purchase of JetDirect’s assets. The deal is expected close by the end of March, although according to a letter to clients from JDAAC chairman Robert Pinkas, “The transaction will close upon the assignment of a specified number of management contracts and the issuance of the new FAR Part 135 certificate to the buyer.” In a March 11 letter to management clients, JetDirect chairman Gregory Campbell wrote, “JetDirect Aviation Holding LLC’s senior secured lender is in the process of selling substantially all of the Company’s assets in order to satisfy its loans to the Company.” The sale and liquidation of assets is expected to yield up to $20 million, according to Campbell, and that money will be used to pay lienholders Sovereign Bank, (current balance $4 million), with the balance to go to Contrarian Capital, which is owed $35.5 million. No money will be available for lienholders TAG Aviation, owed $33 million, and SJH Capital Partners, owed $40 million. JetDirect employees have been told that JDAAC has provided interim funding to bring overdue payroll and healthcare benefits payments up to date, as well as expense reimbursements.
JetDirect Finalizes Asset Purchase Agreement
- March 19, 2009, 12:07 PM