Ravn Air Group has been conditionally approved by the
U.S. Treasury to apply for payroll grants under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) Payroll Support Program.
The grants would help pave the way for buyers seeking to purchase the entire Air Group, which is early in its bankruptcy proceedings. It would help as the air group tries to exit Chapter 11, and keep the workforce paid during the transition.
Ravn plans to sell all or most of its assets on Wednesday, June 17.
“This is great news for our creditors, our employees, our customers, and for the 115 different communities we were serving before the COVID-19 Pandemic hit Alaska and forced our company to seek Chapter 11 protection. We would like to thank Treasury Secretary Mnuchin and Alaska’s congressional delegation, Senators Dan Sullivan and Lisa Murkowski, and Congressman Don Young for their tireless work in connection with this conditional approval,” said Dave Pflieger, Ravn’s President & CEO.
“The opportunity to receive CARES Act Grants and work with our DIP lenders on a sale process means there is a new path forward by which Ravn could resume operations later this summer,” said Pflieger.
“Now, instead of only one path, a planned liquidation, qualified parties who meet strict bidding criteria and guidelines will be able to buy the entire Air Group with all three of its airlines. This is a game-changer for our creditors, our employees, our customers, and the many communities we have served for decades,” he said.
Ravn filed for Chapter 11 protection on April 5, following a 90 percent drop in bookings and revenue due to the arrival of COVID-19 in Alaska, and a state-mandated travel ban. Before that, Ravn was Alaska’s largest regional air carrier. The company and its three separate airlines had over 1,300 employees, and carried passenger, mail, freight, and charter customers to more than 115 destinations throughout Alaska.
If Ravn’s motion to authorize and approve sales bidding procedures is approved at the upcoming May 27 hearing, bids will be due on June 17.
… Continue Reading at: mustreadalaska.com [source]