A new twist in the Evergreen Story...

[Ed Likes]

I have been following this story as best I can. If Im understanding the possible deal between Collings and Evergreen Avaition is June 11th should be the day that the I's are dotted and the T's crossed or not?
Collings pays $22 million which will help out Evergreen Avaition Museum, and in return Collings gets 9 aircraft. I know a P-38 has been on their wish list for sometime could the P-38 that is at Evergreen Avaition be among those 9 aircraft?
I have been to Evergreen Avaition in June 2013 a really great museum. Im also a member of Collings so I pesonally see this as a win win for everyone. Does any one know the latest goings on between the two meaning Collings and Evergreen? I also want to be corrected if what I said in sort of plain English is incorrect as to how I view this situation.

[BrianB]

Some additional insight into what a wheeler-dealer Del Smith was....back in the early 1990's when his son was racing in the Indy car Lite series in Long Beach I was invited up to meet Del in his suite overlooking the course. At that time I was managing a Landing Gear Overhaul Division for a large manufacturer and we had a set of B747 gear from Evergreen in our shop that we had overhauled. The bill was around $500K but Evergreen had notoriously bad credit and we needed cash in advance before shipping the gear back to Marana. After some small talk Del pulled out a legal document offering an airworthy P-51 as collateral for the gear with full payment to be made in 90 days. Being a warbird fan I considered it for about 10 seconds than came to the conclusion that my boss would not be very happy with me if I said yes. After declining I was promptly ushered out of the suite without being allowed to watch the race.

[JohnB]

After declining I was promptly ushered out of the suite without being allowed to watch the race.

Sounds like a real classy guy.

[hang the expense]

All I can say is "What a mess".

[Jack Cook]

Del was a interesting guy who could be very intimidating. But, he was always very good to me!!
Yeah Gulfstream to Marana............Yeah Lear to Anchorage for lunch!!

[p51]

Some additional insight into what a wheeler-dealer Del Smith was....back in the early 1990's when his son was racing in the Indy car Lite series in Long Beach I was invited up to meet Del in his suite overlooking the course. At that time I was managing a Landing Gear Overhaul Division for a large manufacturer and we had a set of B747 gear from Evergreen in our shop that we had overhauled. The bill was around $500K but Evergreen had notoriously bad credit and we needed cash in advance before shipping the gear back to Marana. After some small talk Del pulled out a legal document offering an airworthy P-51 as collateral for the gear with full payment to be made in 90 days. Being a warbird fan I considered it for about 10 seconds than came to the conclusion that my boss would not be very happy with me if I said yes. After declining I was promptly ushered out of the suite without being allowed to watch the race.

I can't understand how you didn't make it clear that the bill was going to have some added charges (with strong hinting at it being what gun show sellers sometimes refer to as an "A-hole tax"). I sure would have.

[Warbirdnerd]

The A-26 and DeHavilland have been awarded to World Fuel:

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

[kmiles]

Has all been closed and finalized as of the end of June.

Last edited by kmiles on Tue Jul 07, 2015 6:13 pm, edited 1 time in total.

[JohnB]

It will be interesting to see what the DH-4 is offered at...and sold for.

I might be mistaken or is it a Boeing-modified DH-4M with the steel tube fuselage?
Is it airworthy (or was it at the time of being put into the museum)?

[Chris Brame]

It will be interesting to see what the DH-4 is offered at...and sold for.

I might be mistaken or is it a Boeing-modified DH-4M with the steel tube fuselage?
Is it airworthy (or was it at the time of being put into the museum)?

Yep - DH-4M. The museum's website says it still carries an airworthiness certificate, so here's hoping.
Per airport-data.com:

Registration Number: N3258
Alternative Code/Name: 166
Mode S (ICAO24) Code: A38453
Certification Class: Experimental
Certification Issued: 1999-04-21
Air Worthiness Test: 1955-06-24
Last Action Taken: 2008-04-15
Current Status: Valid
One of 180 DH-4s upgraded by the Boeing Aircraft Company in 1923 for mail hauling service. On display in the Evergreen Aviation Museum.

[kmiles]

It will be interesting to see what the DH-4 is offered at...and sold for.

I might be mistaken or is it a Boeing-modified DH-4M with the steel tube fuselage?
Is it airworthy (or was it at the time of being put into the museum)?

There is no guarantee that the DH-4 will be on the market at all. The settlement was for the amount of the appraisal, not the aircraft itself. The DH-4 was part of the bankruptcy settlement, so the creditor is getting a financial settlement (part of the $22 million), not the actual aircraft. The DH-4 is one of the aircraft that is going to the person/group that put up the $22 million. The trouble with the DH-4 is that there were several creditors with that particular aircraft on "their books". If you read the article above, the amount it was on their books for was as high as 2 million.

The bad news is that there are some aircraft that are going to be leaving the Evergreen museum. Some of them will be taken apart and shipped out, and several will be worked on "on-site" and will be towed across the street and flown out. There will be some "static" aircraft that will be returned to the air.

[JohnB]

There is no guarantee that the DH-4 will be on the market at all. The settlement was for the amount of the appraisal, not the aircraft itself.

I'm not doubting you but the release quoted above says...
"But the second plane, a DeHavilland DH4M1, was to be sold according to the settlement terms, with World Fuel receiving the proceeds."

Sounds like it will be sold by someone with the proceeds to the creditor.

[Tim Savage]

There is no guarantee that the DH-4 will be on the market at all. The settlement was for the amount of the appraisal, not the aircraft itself.

I'm not doubting you but the release quoted above says...
"But the second plane, a DeHavilland DH4M1, was to be sold according to the settlement terms, with World Fuel receiving the proceeds."

Sounds like it will be sold by someone with the proceeds to the creditor.

I went and read the court document..I am not an attorney, but from what I read it said that of the significant sum received by EVA the major portion went to the bank and 525k was held back for World Fuel in reserve until another legal action is settled between EVA and World Fuel as to whether the liens were valid.

It appears to me the issue of the A-26 is not settled either as it is also at issue in the adversary action filed by EVA against World Fuel.

It appears that the lawsuit between EVA and World Fuel has not been settled or dismissed according to the court docket, so from my limited understanding the A-26 will sit until that is decided as well the 525k for the DH4M, but the airplane itself belongs to the new buyer.

[Ed Likes]

I fully understand why the Principal Major Players Evergreen Intl. and Collings are keeping things hush hush. But assuming this deal does indeed go thru just for fun what aircraft would Collings perhaps want to get for their substantial financial committment? I will start I would hope that the P-38 that I saw there in 2013 might finally come out of a 25 year self imposed retirement. I think it flew in there around 1990 or so and has not flown since.
I do know that a P-38 has been on Collings wish list for quite some time. Anybody else care to speculate as that is what this is speculation just for fun or course. I read somewhere that this potential deal would allow Collings to come out of this with 6 aircraft.

[cwmc]

Jay Dee Mustang, MkXVI Spitfire, F4U, TBM, P-40M, P-38.
Chris...