Judge Karen S. Jennemann has ordered that the Disclosure Statement filed by Via Airlines, Inc., is approved.
The Compromise Motion is granted and the compromise set forth therein is approved.
The Final Plan is confirmed.
A Post-Confirmation Status Conference has been scheduled before the Honorable Karen S. Jennemann for Sept. 8, 2020 at 2:45 p.m., at the United States Bankruptcy Court, 400 W. Washington Street, 6th Floor, Courtroom A, Orlando, Florida 32801.
Via Airlines submitted a Final Plan of Reorganization.
Class 1 Allowed Secured Claim of Bank of America, N.A., is impaired. The Class 1 Claim is secured by a first priority lien on the Debtor’s Personal Property. BOA will receive one of the following options: (1) receipt of the collateral securing BOA’s Class 1 Secured Claim as the indubitable equivalent of its Claim; or (2) a lump sum payment of $100,000 paid on the Effective Date.
Class 2 Allowed Secured Claim of IberiaBank is impaired. The Class 2 Claim is secured by a second priority lien on the Debtor’s Personal Property. Iberia will retain its lien on the Debtor’s Personal Property to the same extent, validity and priority as existed on the Petition Date, and shall receive stay relief to pursue its in rem rights with respect to the Personal Property securing its Class 2 Claim.
Class 2(c) Allowed Secured Claim of Precision Aviation Group, Inc., is impaired. Class 2(c) consists of the Allowed Secured Claim of Precision Aviation Group, Inc., which Claim is secured by a possessory lien on aircraft parts owned by the Debtor. Precision shall retain its possessory lien on the aircraft parts owned by the Debtor to the same extent, validity and priority as of the Petition Date, and shall receive stay relief to pursue its in rem rights with respect to the Personal Property securing its Allowed Class 2(c) Claim.
Class 3 General Unsecured Claims are impaired. Class 3 consists of the all Allowed Unsecured Claims in the Debtor’s Bankruptcy Case. Class 3 Holders will become beneficiaries of the Litigation Trust and shall receive, on the later of: (i) the Effective Date; (ii) the date all Claim Objections are resolved; or (iii) the date all Causes of Action are fully resolved by Final Order of the Bankruptcy Court, 100% of the net proceeds recovered by the Litigation Trust, paid pro rata, after all costs and expenses of the Litigation Trust, including without limitation, the costs and expenses of the Trustee and counsel to the Litigation Trust, if any.
Class 4 Equity Interests are impaired. On the Effective Date, all currently issued and outstanding Equity Interests in the Debtor shall be extinguished and 100% of the Interests in the Reorganized Debtor shall be vested in the Plan Sponsor, or its designated affiliate, in return for the Plan Consideration provided by the Plan Sponsor.
The Plan will be implemented utilizing funding provided by the Plan Sponsor.
A full-text copy of the Final Plan of Reorganization dated July 20, 2020, is available at https://tinyurl.com/y4eo4ekw from PacerMonitor.com at no charge.
Counsel for the Debtor:
JUSTIN M. LUNA, ESQ.
FRANK M. WOLFF, ESQ.
DANIEL A. VELASQUEZ, ESQ.
LATHAM, LUNA, EDEN & BEAUDINE, LLP
111 N. MAGNOLIA AVE., SUITE 1400
ORLANDO, FLORIDA 32801
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.