The ongoing saga of the Chapter 11 bankruptcy proceeding for Albuquerque, New Mexico-based One Aviation continues, but it appears that debtor-in-possession Citiking International has made the path forward a bit smoother.
After months of navigating the bankruptcy process and with Citiking facing objections from several creditors, on June 11 the acting U.S. trustee motioned to dismiss the company's prepackaged reorganization plan, which could have driven the company into Chapter 7 liquidation. Citiking, in turn, requested court approval for a Section 363 sale of the company's assets.
The sell-off plan immediately came under fire from creditors, as it would effectively wipe out any settlements those entities would receive under an organized Chapter 11 resolution. Objections were filed and a hearing date was originally set for July 11, later rescheduled for July 29.
However, that hearing was then canceled outright on July 26, with the notice to the court indicating that Citiking had leveraged the Section 363 sale proposal to bring its creditors onboard with its original plan to exit Chapter 11.
"The debtors intend to withdraw the motion...so that the debtors may proceed with a combined hearing regarding approval of the debtors’ disclosure statement and confirmation of the debtors’ plan," reads the July 26 filing, withdrawing creditors' objections to the Section 363 sale. The motion further notes a hearing on the trustee's motion was adjourned "by agreement of the parties to a date to be determined."
An omnibus hearing on Citiking’s restructuring plan is now set for September 11. In addition to the trustee’s motion, concerns also remain over approval by the U.S. Committee on Foreign Investment in the United States (CFIUS) on the plan for One Aviation to be acquired by Chinese-backed Citiking.