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Tag: ACY stock

  • AeroCentury Corp. (NYSE: ACY) stock Classify A Voluntary Case For Reorganisation Of Chapter 11

    AeroCentury Corp. (ACY) stock combined with its branched-off businesses and daughter companies, specializes in leasing and finance services to various airlines around the globe. ACY has reported that Aero century Corp daughter companies filed a petition (the “Chapter 11 Case”) under chapter 11 of title 11 of the United States Code. A chapter 11 debtor usually seeks relief and aims reorganization to keep sustain its business and resolve indebtedness.

    ACY has planned that the Chapter 11 process is an extremely efficient way to pay back the creditors and increase company progression towards their aim of continuing in operating aircraft and leasing in order to save enterprise value for the stakeholders in the company.

    Aerocentury corp. administration regarding its assets and functioning of its aircraft and communications will not see any changes, however, ACY will pay manufacturers and distributors under a customized set term for goods and services received, with the payment structure and method remaining the same for the employees.

    ACY Opts for Auction Sale.

    ACY has brought forward an auction sale (“Auction Sale”) for its assets to fund repayment of its creditors to its sole secured lender, Drake Asset Management Jersey Limited (“Drake”). ACY has initiated a bid with Drake to buy the aircraft collateral securing the Drake indebtedness, however more valuable bids may produce circumstantial change

    Aerocentury corp. owns twelve aircraft out of which Ten is hindered for full usage by a first priority lien securing the Company’s capital of $83.2 million However two are on lease in Kenya with no correlation to Drake’s indebtedness.

    Conclusion

    AeroCentury Corp. (NYSE: ACY) has invested in a very lucrative market of lease financing for airlines, however, a decrease in demand for traveling due to the pandemic as well as overcoming a high debt may prove to be extremely significant in increasing the company’s valuation.

  • AeroCentury Corp. (ACY) stock plunged in the recent trading session: here’s why

    AeroCentury Corp. (ACY) stock recently traded at $4.24 which is a 38.64% downward movement. The ACY stock previously closed at $6.91.

    The heavy plunge in the recent trading session of the ACY stock comes adjacent to the news of AeroCentury Corp. announcing that it is filing a petition for Chapter 11 Reorganization.

    The Corporate profile of AeroCentury Corp (ACY)

    The AeroCentury Corp. (ACY) is an established aircraft operating lessor and finance company. It has a worldwide customer base of regional airlines. ACY stock has leased from 50 to 100 passenger regional aircraft in 15 countries. The company’s asset consists of a balanced range of old and new aircraft, turboprop, and engines that it leases to regional air carriers.

    The AeroCentury Corp. (ACY) is filing Chapter 11

    The AeroCentury Corp. (ACY) Company prides itself on faring better than its large carrier counterpart during cyclical and economic downturns due to its business model being flexible, opportunistic, and adaptable cost structure.

    However, ACY stock has hit a barricade in the form of Chapter 11 bankruptcy recently. Chapter 11 bankruptcy is usually referred to as “reorganization” bankruptcy. This bankruptcy requires a written disclosure statement and a plan of reorganization to be filed in court. The statement should disclose the concerned company’s assets, business affairs, and liabilities as such that allow the creditor to assess an informed evaluation of the debtor’s reorganization plan.

    How does AeroCentury (ACY) plan to proceed?

    The AeroCentury Corp. (ACY) is planning to proceed with Chapter 11 bankruptcy, specifically operating in accordance with the “debtor-in-possession” operation of its business.     AeroCentury does so because it believes this is the most effective next step for resolving the ACY stock’s outstanding indebtedness. Specifically, the reorganization of the financial operations includes the continuation of its regional aircraft business to preserve and maintain the value for the stakeholders of ACY stock.

    While it is applying for “reorganization” bankruptcy, many of the aspects of business and finances remain the same. The company’s relation and interaction with its lessees will remain unchanged and the portfolio of its assets and operations will remain intact. These operations will require for utilization and maintenance of existing cash portfolios and management systems. For this, AeroCentury has filed a motion to the Bankruptcy Court seeking “first-day” relief to allow uninterrupted continuation of the business.

    Auction Sale is the proposed solution by AeroCentury (ACY)

    One solution given that will relieve the ACY stock of its debt is a proposal for an Auction Sale offer to Drake Asset Management Jersey Limited. Drake is the sole lender of AeroCentury Corp and has made a deal with its debtor to enter into a stalking horse agreement. This agreement consists of possessing all the aircraft collateral in order to pay up ACY’s indebtedness. Auction sales like these which are a part of the Bankruptcy filing motions can lead to successful bidding of assets and collateral of the in-debt company. This can lead to the clearance of the pending and owed payments while resolving the Bankruptcy.