Pemco World Air Services Inc., which provides aircraft maintenance and repair services, sought bankruptcy protection with plans to sell the company at auction.
The company, based in Tampa, Florida, listed assets and debt of $50 million to $100 million each in Chapter 11 documents filed today in U.S. Bankruptcy Court in Wilmington, Delaware. Two affiliates also sought court protection.
Pemco, an indirect unit of Boca Raton, Florida-based private-equity firm Sun Capital Partners, filed for bankruptcy “to sell their viable aircraft maintenance and conversion business,” Chief Financial Officer Benjamin B. Ward said in court papers. The sale would be conducted as a bankruptcy auction subject to competing bids and court approval.
The company will also “complete a prompt and orderly liquidation of substantially all of their remaining U.S.-based assets,” Ward said.
Pemco will seek court approval to borrow as much as $37.8 million from Avion Services Holdings LLC to help fund operations while in bankruptcy, according to court documents. Avion, a Sun Capital affiliate holding $31.8 million in Pemco debt, has been chosen to act as the initial bidder at the auction.
The company claims to be the world leader in narrow-body aircraft cargo conversions with more than 300 completed, court papers show. Founded in 2007, Pemco has about 877 employees at three service facilities in Tampa, Dothan, Alabama, and Erlanger, Kentucky.
The case is In re Pemco World Air Services Inc., 12-10799, U.S. Bankruptcy Court, District of Delaware (Wilmington).
To contact the reporter on this story: Michael Bathon in Wilmington, Delaware, at email@example.com