Ravn Air Group Conditionally Approved To Move Forward For CARES Act Grants, Files Motion For Sale Process
Ravn Air Group has been conditionally approved by the US Treasury to move forward and seek payroll grants under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) Payroll Support Program (PSP). 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.
In addition, Ravn has worked with its Debtor in Possession (DIP) lenders to develop a process for the airline to sell all, substantially all, or a substantial part of its assets on Wednesday, June 17, and next week Ravn will be asking the federal bankruptcy judge handling the company’s Chapter 11 case to approve that process.(If Ravn’s motion to authorize and approve sales bidding procedures is approved at the upcoming May 27 hearing, bids will be due on Wednesday, June 17.)
“This is great news for our creditors, our employees, our customers, and for the 115 different communities we were serving before the COVID-19 Pandemic hit Alaska and forced our company to seek Chapter 11 protection. We would like to thank Treasury Secretary Mnuchin and Alaska’s congressional delegation, Senators Dan Sullivan and Lisa Murkowski, and Congressman Don Young for their tireless work in connection with this conditional approval,” says Dave Pflieger, Ravn’s president and CEO.
“The opportunity to receive CARES Act Grants and work with our DIP lenders on a sale process means there is a new path forward by which Ravn could resume operations later this summer,” says Pflieger. “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. This is a game-changer for our creditors, our employees, our customers, and the many communities we have served for decades.”
“Saint Paul fully supports everything Ravn is doing to get the airline up and flying again. Ravn provides vital air service to our remote island community, and they have been a fantastic partner over the last year and a half,” says Phillip Zavadil, city manager for the City of Saint Paul.
In This Issue
Hardware Hangs In
Turns out, predicting the effects of a pandemic on a global economy is kind of impossible. In the midst of the uncertainty, those companies that crumbled and those that found ways to thrive seemed random at times, depending on local economies, access to financial aid, the unpredictability of consumers, changing regulations, and a little bit of “who knows.”