The A-26 and DeHavilland have been awarded to World Fuel:
Quote:
A dispute over the value of an aircraft tangled up in the Evergreen Vintage Aircraft bankruptcy case has been settled, paving the way for a smooth, if not entirely satisfactory, final bankruptcy settlement process for the major parties involved.
World Fuel Services, a company that provided fuel to EVA parent company Evergreen International Airlines, was granted security interest in two EVA-owned aircraft in 2012. The global bankruptcy settlement negotiated primarily by EVA and its largest creditor, Umpqua Bank, stipulated that the first plane, a Douglas A-2B Invader, would be handed over to World Fuel free and clear as its claim was “valid and unavoidable.”
But the second plane, a DeHavilland DH4M1, was to be sold according to the settlement terms, with World Fuel receiving the proceeds.
When the security interest was granted to World Fuel in 2012 an appraisal found the plane had a value of $2 million. A more recent appraisal, however, assessed the plane at $700,000. Naturally World Fuel hoped to prove the higher value was still accurate, but struggled to produce expert testifiers and multiple times asked the court to postpone hearings. The other creditors grew increasingly irritated and objected to each delay.
“Less than 24 hours before the third opportunity to present evidence of value (a proverbial third bite at the apple), World Fuel, Inc. requests yet another postponement,” Umpqua Bank said in a court filing. “The basis for World Fuel’s request is meritless and is clearly an attempt to block debtor from entering into a reasonable settlement agreement.”
The bankruptcy settlement was approved May 28, with a final payout from EVA of $22 million. Of that amount $20.5 million was guaranteed to Umpqua Bank with the remaining $1.5 million to be divided up among smaller creditors.
Yamhill County had a secured claim against EVA for $480,000 for taxes due. Attorney Jeffrey Misley said in court filings that the county did not object to the settlement provided the full $480,000 was paid to the county. That would leave the $1.5 million holdback at slightly more than $1 million for any payments to World Fuel.
The $700,000 appraisal favored by EVA would have left more than enough to pay off both World Fuel and Yamhill County. But since World Fuel initially objected and held to the $2 million appraisal, Judge Randall Dunn split the difference at the May 28 hearing and ruled that the Dehavilland was worth no more than $1.35 million. This allowed him to approve the settlement, as the $1.35 million was technically within the $1.5 million holdback, and to postpone a final definitive valuation of the plane for another hearing.
That final hearing took place June 11, during which “following the presentation of evidence (and) testimony, the court closed the record. The court found that the liquidation value of the aircraft is $525,000,” according to court records.
This final valuation indicates the holdback will more than cover the payouts to World Fuel and Yamhill County and appears to set the settlement on its most secure footing yet.
On June 12, Umpqua Bank was granted a relief from the stay that had been imposed by EVA’s December bankruptcy filing. This grants the bank foreclosure rights should the settlement fail to go through as planned.
In court filings the bank states it will not foreclose on EVA’s assets provided the terms of the settlement are followed, including that Umpqua Bank receives its $20.5 million by June 25 at the latest.
Found it here:
http://www.pamplinmedia.com/nbg/142-new ... settlement
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