National Air Cargo Inc. (NACI) has announced it is set to exit US Chapter 11 bankruptcy protection just over three years after its first filing.
The freight specialist applied for protection in October 2014 citing the financial impact of reduced military charter work as well as a USD10 million October 2013 US district court judgement in which start-up Global BTG successfully claimed that NACI had, in 2010, breached a Letter of Intent by failing to finance eight B747-400(F) aircraft leases through Global.
In a filing lodged earlier this month, NACI said a US Bankruptcy Court in Buffalo, N.Y. had approved its debt-repayment plan herein at least 60% of its USD12.4 million debts will be paid to creditors.
According to court documents seen by The Wall Street Journal, NACI will raise the funds via the sale of four Rolls-Royce jet engines for USD1.4 million and from a USD4 million insurance pay-out. Founder Christopher Alf, who has said he is prepared to inject more than USD12 million into NACI, may contribute to the payments from his personal resources although only “if necessary,” Chief Financial Officer Michael Tew said.
National Air Cargo Inc.’s parent company, National Air Cargo Holdings Inc., also operates National Airlines (N8, Orlando Sanford).
