On November 16, 2004, US Federal District Court judge, Allan Gropper, approved AV
's 'plan of reorganization', which will allow AV
to exit US Chapter 11 bankruptcy protection, resolve its creditor claims and provide the firm with fresh equity capital.
Brazil's Grupo Synergy will provide USD 63 million in funding and acquire a 75% equity interest, with Colombia's Federación Nacional de Cafeteros de Colombia holding the remaining 25%. AV
's creditors approved the plan by a 99.8% margin.
Synergy's offer is what is referred to as a "stalking horse bid" under US bankruptcy law, as, theoretically, ANY other party could present a counter-bid between now and December 15, 2004 that is deemed to offer superior value to AV
's creditors and stakeholders. However, no other offer is expected.
looked at AV
last year and decided not to place a bid. Both LA
are also not expected to top Synergy's bid. As for the consortium of AV
pilots attempting to source funding for their bid, they do not offer any credibility relative to the Synergy proposal.
So, it appears the Brazilians will be the proud owners of AV
in two week's time. Quite a Christmas present if there ever was one...
As for new/replacement equipment for AV
's short haul fleet, who knows? At this point, it all appears to be pure speculation given the carrier's current situation.