Opportunity to Save Ravn Air Group Has Attracted Multiple Bidders
Ravn Air Group and its secured creditors (i.e. its banks and/or lenders) have now notified all eligible bidders about the terms and minimum bids required for the upcoming auction to purchase assets associated with the company and its three airlines.
The auction will offer bidders the opportunity to buy the entire company or certain lots of its assets in a sale that the company will ask the Bankruptcy Court to approve at a hearing on July 9.
Ravn received expressed interest in bidding for all, or substantially all, of Ravn Air Group’s three airlines and their assets. And almost thirty bidders from inside and outside Alaska made diverse offers ranging from acquiring Ravn and all three of its airlines in their entirety, to those interested in purchasing significant portions of the company and others interested in buying individual aircraft and airport buildings. The US Bankruptcy Court met to hear from attorneys representing Ravn, its lenders, and its unsecured creditors to address, among other things, the sale and auction process.
The auction will be held on Tuesday, July 7 in accordance with established bid procedures. Bidders who have been notified by Ravn that they are qualified bidders may attend and participate in the auction. If they intend to participate, they must state their intent to do so by 10 a.m. local time (2p.m. EDT) on Sunday, July 5.
“Everyone working for Ravn before and after the impact of COVID-19 is thrilled with the amount of interest that our great team of employees and advisors have generated in saving Ravn and our three airlines. To a person, all of us remain optimistic that the company will have the opportunity to exit Chapter 11 protection, rehire our employees, resume operations, and restart the essential air service that we previously provided to 115 different communities around the state. We firmly believe that selling the Air Group as a going concern is the best outcome for all parties involved, as it will maximize creditor recoveries and also enable Ravn to continue providing the vital jobs, airlift, and community service that is so important to Alaska,” said Dave Pflieger, Ravn’s president and CEO.
Last week, Ravn Air Group announced that it has been approved by the US Treasury to receive $31.6 million in Coronavirus Aid, Relief, and Economic Security Act (CARES) Act Payroll Support Program (PSP) Grants—subject to Bankruptcy Court approval. This financing will be available to pay employee salaries and benefits to Treasury-approved bidders seeking to buy the entire Air Group.
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Alaska Problems Require Alaska Solutions
On January 16, a fire destroyed the water plant and washeteria in the southwest Alaska village of Tuluksak. For the village of about 350 people, it was a devastating blow. The water plant was the only source of drinking water in the village, in which the primarily Yup’ik residents lack indoor plumbing and rely on honey buckets, not uncommon in the flat, swampy region.