Judge approves Evergreen asset sale
A federal judge in Delaware has approved sale of substantially all remaining assets of Evergreen International Aviation to Jet Midwest Grou p LLC of Kansas City for $4.9 million.
The sale includes the assets of EIA subsidiaries Evergreen International Airlines, Evergreen Trade, Evergreen Aviation Ground Logistics Enterprises and Supertanker Services.
It transfers the property clear of most liens. Remaining claims against Evergreen are being converted into claims against proceeds from the sale.
It does preserve the first and second lien collateral agent claims against the property, until payment of the final installment.
The hearing also settles an objection by Marana Aerospace Solutions.
The company, which acquired a former CIA base in Arizona from Evergreen, will receive a cash payment of $675,000 from the sale proceeds, plus $500,000 to settle an administrative claim for storage of Evergreen aircraft, parts and equipment.
The company also retains the right to pursue lawsuits for any environmental damage to the property.
The judge’s order notes that Multnomah County in Oregon and King County in Washington would have their asserted liens or back taxes attached to the cash proceeds of the sale.
It also notes that while the Federal Aviation Administration operating certificate states that it is non-transferable, “the FAA may issue an amended operating certificate to Jet Midwest.” It goes on to say, “The transfer of the Certificate of Public Convenience and Necessity issued by the Department of Transportation is subject to the prior approval of the Department of Transportation.”
In the process, the deadline for Evergreen trustee Alfred Giuliano to make a decision on various Evergreen leases was extended to July 31.