New Delaware Chapter 11 Filing – ONE Aviation Corporation

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ONE Aviation Corporation, along with eleven subsidiaries and affiliates, has filed a petition for relief under chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Lead Case No. 18-12309).  ONE Aviation, based in Albuquerque, New Mexico, is an aircraft manufacturer that was formed by the 2015 merger between Eclipse Aerospace and Kestrel Aircraft.  ONE Aviation has filed with a prepackaged plan of reorganization, which is supported by ONE Aviation’s senior pre-petition lender, Citiking International US LLC.  One Aviation is seeking to hold a combined hearing on November 19, 2018 to approve its Disclosure Statement and confirm the prepackaged plan.  According to the First Day Declaration, the prepackaged plan contemplates a debt for equity swap, with Citiking receiving 100% of the Class A common stock in the reorganized ONE Aviation.  Epiq is the proposed claims and noticing agent.  The cases have been assigned to the Honorable Christopher S. Sontchi.

Contact Norman L. Pernick, G. David Dean or Myles R. MacDonald for more information regarding this matter.

As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.

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