IBERIABANK, a Louisiana state bank and a secured creditor, filed a renewed objection to approval of the Disclosure Statement and confirmation of the Chapter 11 Plan of Reorganization of debtor Via Airlines, Inc.
IBERIABANK objects to confirmation of the Modified Plan on grounds that the Modified Plan is not fair and equitable, and is not feasible.
In its objection, IBERIABANK notes that:
* The Debtor, as the plan proponent, has the burden of establishing the feasibility of the proffered plan of reorganization by a preponderance of the evidence.
* The Plan was not proposed in good faith and was proposed to advantage certain claim holders and Wexford Capital, LP (the Plan Sponsor), and to not treat claim holders fairly in violation of applicable law and in violation of Sec. 1129(a)(3).
* The Modified Plan proposes to treat IBERIABANK as a secured obligation of the Debtor inappropriately and not in compliance with the Bankruptcy Code. Per the Plan, IBERIABANK has been availed two options neither of which provides a specific remedy to deal with the Claim, only conjencture.
* Claim 40 and Claim 42 are treated as Class 3 claims in the Modified Plan. There is nothing about the Modified Plan that is in the best interests of the Debtor’s unsecured creditors and payment to unsecured claims seems to hinge on whether or not the Litigation Trust yields any results.
A full-text copy of IBERIABANK’s objection to plan and disclosure dated April 23, 2020, is available at https://tinyurl.com/yd27qu87 from PacerMonitor at no charge.
Attorneys for IBERIABANK:
Burr & Forman LLP
Michael S. Waskiewicz
50 N. Laura Street, Suite 3000
Jacksonville, Florida 32202
About Via Airlines
Via Airlines, Inc., is a domestic regional airline offering scheduled service across the United States.
Via Airlines sought Chapter 11 protection (Bankr. M.D. Fla. Case No. 19-06589) on Oct. 8, 2019. The Debtor was estimated to have $10 million to $50 million in assets and liabilities as of the bankruptcy filing. Judge Karen S. Jennemann oversees the case. Latham, Luna, Eden & Beaudine, LLP, is the Debtor’s legal counsel.