AeroCentury Corp. Files Proposed Plan of Reorganization

BURLINGAME, Calif., June 22, 2021 (GLOBE NEWSWIRE) -- AeroCentury Corp. (“AeroCentury” or the “Company”) (NYSE American: ACY), announced today that the Company and its two U.S. subsidiaries (collectively the “Debtors”) have filed with the Delaware Bankruptcy Court a proposed combined Plan of Reorganization and Disclosure Statement (the “Plan/Disclosure Document”) with respect to its proposed plan to exit Chapter 11 bankruptcy protection (“Plan”). The proposed plan was filed in connection with the Company’s motion to approve a Solicitation Procedures Order, which, among other things, requests that the Court conditionally approve the combined Plan/Disclosure Document for solicitation purposes only and authorize the Debtors to solicit votes to accept or reject the Plan. The Bankruptcy Court has set a hearing date of July 12, 2021 to hear the proposed motion and to consider approval of the Solicitation Procedures Order

“The filing of our proposed combined plan and disclosure statement and the request for approval of our claimant vote procedures represent further milestones towards the Company’s emergence from Chapter 11,” explained Michael Magnusson, President of the Company. “Discussions with potential plan sponsors are ongoing, and this filing allows us to keep on track for a timely exit from bankruptcy, while also providing the time needed for the careful consideration of potential debt and/or equity investment terms that are being presented to the Company.”

The proposed Plan/Disclosure Document contemplates two potential paths to the Debtors’ emergence from bankruptcy. The first is the Sponsored Plan scenario that is dependent upon the Company finding a suitable plan sponsor (“Plan Sponsor”) that would enter into a Plan Sponsor Agreement with the Company to operate the Debtors’ businesses on a go-forward basis and relaunch the Debtors’ aircraft acquisition, leasing, and disposition operations using capital to be provided by the Plan Sponsor. The Company has not yet entered into any agreement with a Plan Sponsor. The second path is the Stand-Alone Plan scenario, which will occur if a Plan Sponsor is not found or an acceptable Plan Sponsor Agreement is not reached with a Plan Sponsor. Under the Stand-Alone Plan, the Debtors’ remaining assets will be monetized for the benefit of their stakeholders.