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AERO-MARINE: Unsec. Creditors to Get Share of Cash Flow

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Debtors Aero-Marine Technologies, Inc., and Joseph N. Vaughn and Theresa L. Vaughn filed an Amended Joint Plan of Reorganization and a corresponding Disclosure Statement on April 14, 2020.

The Plan provides for the sale of real property owned directly or indirectly by the Debtors with the exception of the Vaughns homestead, for the sale of excess equipment, and for the continued operations of the repair facility by Aero-Marine. The Vaughns’ obligations under the Plan will be funded by their employment income from Aero-Marine based on their current salary levels.

The Plan provides for unsecured creditors holding Allowed Claims to receive their pro rata share of the Debtors’ respective net cash flow or net disposable income over 20 quarters. The Debtors believe that the Plan provides the greatest possible recovery to the Debtors’ creditors. The Debtors believe that acceptance of the Plan is in the best interest of each and every Class of Claims and recommends that the Voting Classes vote to accept the Plan.

Class 7 consists of all Allowed Unsecured Claims of creditors of Aero-Marine Technologies, Inc. Aero-Marine shall pay to Holder of a Class 7 Allowed Unsecured Claim the Net Cash Flow over 5 years. Aero Marine will distribute a pro rata share of the Net Cash Flow to the Holders of a Claim of the Unsecured Class of Aero Marine Technologies, Inc.

Class 8 is comprised of all allowed unsecured claims of creditors of Joseph and Theresa Vaughn. The Vaughns will pay to each Holder of a Class 8 Allowed Unsecured Claim a pro rata share of the Vaughns’ monthly projected disposable income for five years.

Class 9 consists of all equity interests in Aero-Marine. The Vaughns will retain their equity interest in Aero-Marine in consideration of new value provided by the Vaughns from their exempt assets for the purchase of Essential Equipment in Class 3.

The Plan provides for the continued operation of the Debtor as the Reorganized Debtor. Claims will be satisfied by (a) transfers of collateral, (b) from the proceeds of sales of real and personal property, or (c) from monthly, quarterly, or annual payments from the revenue obtained by the Debtors or the Reorganized Debtor. At the present time, the Debtors believe that the Reorganized Debtor will have sufficient funds, as of the Effective Date, to meet its obligations under the Plan. At the present time, the Debtors’ projected disposable income is $970 per month.

A full-text copy of the Disclosure Statement dated April 14, 2020, is available at https://tinyurl.com/y73raz3p from PacerMonitor at no charge.

The Debtors are represented by:

Stichter, Riedel, Blain & Postler, P.A.
Daniel R. Fogarty
Mark F. Robens
110 East Madison Street, Suite 200
Tampa, Florida 33602
Telephone: (813) 229-0144
Facsimile: (813) 229-1811
E-mail: dfogarty@srbp.com
mrobens@srbp.com

About Aero-Marine Technologies

Aero-Marine Technologies, Inc. provides total support for waste and water system components found on Boeing, Airbus and Embraer aircraft. Aero-Marine Technologies is a full-service Maintenance, repair and overhaul (MRO) with a worldwide customer base.

Aero-Marine Technologies sought bankruptcy protection under Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Case No. 19-07547) on Aug. 9, 2019. The Debtor’s case is jointly administered to that of Joseph N. Vaughn and Theresa L. Vaughn.

In the petition signed by Joseph N. Vaughn, president, Aero-Marine’s assets are estimated at $500,000 to $1 million, and its liabilities at $1 million to $10 million.

The Hon. Caryl E. Delano is the case judge.

Stitchler, Riedel, Blain & Postler, P.A., is the Debtor’s legal counsel.

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