Arrow Air
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www.theherald.com.... Confirms carrier's bankruptcy
Friday, Jan. 30, 2004 (Miami Herald)........ Business briefs, AIR CARGO.........The Miami cargo carrier Arrow Air received approval Thursday from U.S. Bankruptcy Judge A. Jay Cristol to receive $750,000 of debtor-in-possession financing from its secured lenders, headed by Bank of America.The money, along with other operating funds, is to be used to pay $756,000 in payroll due today as the airline continues flying. A hearing is scheduled for today regarding $2.25 million in additional funding that would allow the carrier to operate for up to 30 days while finalizing a deal with Amerijet's owner, H.I.G. Capital, to buy certain assets. Jonathan Vair, an attorney for Stearns Weaver Miller representing Arrow Air, said late Thursday that ``the debtor [was] meeting with several investors and hoping to have a deal regarding the sale of its assets in place as early as [Friday].'' Arrow Air filed for Chapter 11 on Wednesday, less than two years after the airline, formerly called Fine Air, emerged from bankruptcy protection.
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Looks like Arrow Air is finished with the vultures picking over the bones as revealed in the article below.
Arrow Air has laid off nearly a quarter of its workforce this week, but, in a proposal that may preserve some South Florida jobs, the majority owner of Fort Lauderdale cargo carrier Amerijet International agreed Wednesday to buy some of the Miami company's assets.
H.I.G. Capital has offered $13.5 million to purchase Arrow Air's name, aviation certificate, customer list, accounts receivable and one inoperable DC-8 aircraft, said Stearns Weaver Miller attorney Jonathan Vair, who represents Arrow Air.
''We're not necessarily thrilled about the offer, but it's the only one on the table right now,'' Vair said after Wednesday's bankruptcy hearing.
U.S. Bankruptcy Judge A. Jay Cristol approved $3 million for Arrow Air to continue operations. The debtor-in-possession financing is from H.I.G. and a group of lenders led by Bank of America.
Arrow Air, which filed for bankruptcy protection under Chapter 11 last Wednesday, made ''drastic employee cuts'' Tuesday, Chief Executive Frank Visconti told the judge. The company laid off 180 of its 750 employees as part of an ongoing effort to improve efficiency, he said.
The purchase -- which has not yet been approved by the court and is expected to be completed Feb. 23 -- is subject to higher and better offers. A higher offer would mean more money; a better offer would mean selling the cargo carrier as a going concern, Vair told the court. Other entities, including cargo carrier TradeWinds Airlines, have expressed interest in Arrow Air.
The purchase agreement, reached between the secured lenders and H.I.G. Capital, includes $2 million in debtor-in-possession financing, $8 million cash at closing and $3.5 million in a note. The bank group also put in $1 million in debtor-in-possession financing.
''We think it's the right move for Amerijet,'' said the company's chief executive, David Bassett.
Meanwhile, Arrow Air continues flying. Now at the height of the Valentine's Day flower shipping season, the carrier has been carting flowers from Ecuador and Colombia.
If Amerijet is successful at completing its asset purchase, it could offer jobs to some Arrow Air employees, Bassett said.
''We'll try to employ as many as we can, based on the business plan going forward,'' he said during a break in Wednesday's hearing. ``We're certainly going to need a lot of them.''
Arrow Air has laid off nearly a quarter of its workforce this week, but, in a proposal that may preserve some South Florida jobs, the majority owner of Fort Lauderdale cargo carrier Amerijet International agreed Wednesday to buy some of the Miami company's assets.
H.I.G. Capital has offered $13.5 million to purchase Arrow Air's name, aviation certificate, customer list, accounts receivable and one inoperable DC-8 aircraft, said Stearns Weaver Miller attorney Jonathan Vair, who represents Arrow Air.
''We're not necessarily thrilled about the offer, but it's the only one on the table right now,'' Vair said after Wednesday's bankruptcy hearing.
U.S. Bankruptcy Judge A. Jay Cristol approved $3 million for Arrow Air to continue operations. The debtor-in-possession financing is from H.I.G. and a group of lenders led by Bank of America.
Arrow Air, which filed for bankruptcy protection under Chapter 11 last Wednesday, made ''drastic employee cuts'' Tuesday, Chief Executive Frank Visconti told the judge. The company laid off 180 of its 750 employees as part of an ongoing effort to improve efficiency, he said.
The purchase -- which has not yet been approved by the court and is expected to be completed Feb. 23 -- is subject to higher and better offers. A higher offer would mean more money; a better offer would mean selling the cargo carrier as a going concern, Vair told the court. Other entities, including cargo carrier TradeWinds Airlines, have expressed interest in Arrow Air.
The purchase agreement, reached between the secured lenders and H.I.G. Capital, includes $2 million in debtor-in-possession financing, $8 million cash at closing and $3.5 million in a note. The bank group also put in $1 million in debtor-in-possession financing.
''We think it's the right move for Amerijet,'' said the company's chief executive, David Bassett.
Meanwhile, Arrow Air continues flying. Now at the height of the Valentine's Day flower shipping season, the carrier has been carting flowers from Ecuador and Colombia.
If Amerijet is successful at completing its asset purchase, it could offer jobs to some Arrow Air employees, Bassett said.
''We'll try to employ as many as we can, based on the business plan going forward,'' he said during a break in Wednesday's hearing. ``We're certainly going to need a lot of them.''
