Bankrupt RavnAir Group said it has been conditionally approved by the US Treasury to receive payroll grants under the CARES Act, and hopes it will attract investors to acquire its assets in the near future.
"This assistance will help pave the way for buyers who are seeking to purchase the entire Air Group, maximize creditor recoveries, and enable a successful exit from Chapter 11 that will preserve Alaska’s largest and most vital regional air carrier and the many jobs and essential air service it provides," the group said in a statement posted on its website.
RavnAir will seek court approval to process the sale of "all, substantially all, or a substantial part of its assets" with bids due by June 17. A hearing has been set for May 27.
"The opportunity to receive CARES Act Grants and work with our Debtors in Possession (DIP) lenders on a sale process means there is a new path forward by which Ravn could resume operations later this summer. 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," President and Chief Executive Dave Pflieger said.
RavnAir Group, the owner of PenAir (Anchorage Ted Stevens), Corvus Airlines (Anchorage Ted Stevens), Frontier Flying Service (Fairbanks International), and Hageland Aviation Services (Saint Mary's), filed for Chapter 11 restructuring on April 5 following a near-total collapse in bookings and a lack of federal funding at the time. The group provided key local air transportation to multiple Alaskan communities and said in early May that it would liquidate rather than seek a restart. Alaska Seaplanes (J5, Juneau International) has since expressed an interest in acquiring PenAir's Air Operator's Certificate.
