Avantair Trustee Moves To Sell Some Assets

 - October 3, 2013, 3:40 PM

Avantair’s bankruptcy trustee filed a motion last week that seeks to sell a Socata TBM 700 owned by a wholly owned subsidiary and used solely for company executive transport. If Middle District Florida Bankruptcy Court judge Catherine McEwen approves the motion during a scheduled hearing on October 17, aircraft sales broker Corporate Jet Solutions would list the turboprop single for $1.85 million.

According to the filing, Avantair has an outstanding loan against the TBM 700 for nearly $1.2 million and owes Palm Beach, Fla.-based Big Sky Aviation nearly $70,000 “for labor and materials in connection with repairing the aircraft.” Corporate Jet Solutions would also get 5 percent commission on the sale of the aircraft. Thus, the trustee has set a minimum sale price of $1.6 million, which–at this price–would provide $260,000 cash that would be used to repay some creditors.

First in line to be repaid is AvAero, the lessor of Avantair’s headquarters in Clearwater, Fla., which is owed more than $45,000 in back rent. In fact, AvAero also filed a motion with the court to allow it to remove Avantair’s remaining assets from the premises on October 15. This includes office furniture and five “cannibalized” Avantis that “consist of airplane shells, many with no landing gears, airplane motors, propellers and/or avionics.” The judge will also rule on this motion on October 17.

Comments

matt's picture

I'm glad to see that some Avantair company assets (espescially that TBM) are getting sold to raise cash but what about paying the employees their pay due to them when the last payroll was not met? And I still see no movement yet on the 401K issue either. I also noticed that the depositions the the company officers were supposed to give have been postponed with no reason given. Makes one wonder  who's on who's side on this bankruptcy action.

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