Qvt overseas liquidating ltd

30-Nov-2016 02:44 by 9 Comments

Qvt overseas liquidating ltd - dating site contact indian

After operating as a regional carrier for major airlines, including United Airlines, for 12 years and as an independent, low-fare carrier under the name "Independence Air" for approximately a year and a half, the Debtors suffered increasing operating losses that led them to file for protection under chapter 11 of the Bankruptcy Code on November 7, 2005.At the outset of the chapter 11 filings, the Debtors obtained authority from the bankruptcy court to attempt to sell their business as a going concern or to find an investor to provide additional capital.

The Debtors, with Jones Days assistance, had reached an agreement with the creditors committee on a protocol by which the committee would conduct an investigation of those prepetition claims against the Debtor Parties.On March 15, 2007, with Jones Days assistance as bankruptcy counsel, FLYi, Inc. ("Independence") and their affiliated debtors (collectively, the "Debtors") obtained confirmation of their chapter 11 plan under the "cramdown" provisions of the Bankruptcy Code. Bankruptcy Court for the District of Delaware was required to make one of its first applications of the Third Circuits decision in Owens-Corning on the doctrine of substantive consolidation.The plan, which become effective on March 30, 2007, will distribute approximately 0 million to unsecured creditors. In the ruling, Judge Mary Walrath affirmed that substantive consolidation is a "rare" remedy that should not be used as a sword to improve recoveries for a specific group of creditors at the expense of other creditors.To that end, the Debtors rejected their remaining aircraft leases and abandoned their remaining owned aircraft.The largest claims in the Debtors chapter 11 cases were the hundreds of millions of dollars in claims held by lessors whose aircraft leases were rejected by Independence and the undersecured deficiency claims of creditors that made loans to Independence secured by abandoned aircraft.After a contested hearing, the judge in the United bankruptcy allowed the Debtors claim for 0 million.

United, the United creditors committee and FLYi all appealed the ruling.

QVT Financial LP ("QVT"), a multi-billion dollar hedge fund, purchased approximately 60% of the Convertible Notes after the filing of the bankruptcy cases.

The Independence-only creditors consisted generally of non-aircraft contract rejection claimants, general trade creditors and International Lease Finance Corporation ("ILFC"), which had leased aircraft to Independence without requiring a guaranty from FLYi.

The plan provided that the Debtors would release all causes of action arising prior to bankruptcy that they may have had against the Debtor Parties.

The protocol set a deadline of April 11, 2007 for the committee to assert any such causes of action.

The Debtors largest asset was a contract rejection claim in the chapter 11 bankruptcy case of United Airlines.