US charter carrier IAero Airways has formally filed for liquidation after ceasing operations and reaching an agreement to sell assets, including its Boeing 737 fleet.
IAero had entered US Chapter 11 bankruptcy protection in September last year.
But subsequent efforts to sell the company failed and the only viable bid, from an entity linked to US company Eastern Airlines, involved picking up IAero’s assets.
Filings to the Southern District of Florida bankruptcy court state that IAero “ceased normal operations” on 7 April.
In a formal request on 12 April to convert the Chapter 11 proceedings to Chapter 7 proceedings – a move to liquidation – the company and its affiliates say they “no longer have an operating business to rehabilitate”.
The filing says a Chapter 7 trustee could oversee the collection and monetisation of its remaining assets.
“[We] believe that conversion of the Chapter 11 cases…to Chapter 7 will inure to the benefit of the…creditors and all other parties,” it adds.
Hearings on 8 and 10 April, centred on approving the proposed sale of assets to Eastern Airlines, resolved various objections.
The list of purchased assets includes 29 737s – comprising 18 737-400s, nine 737-300s and two 737-800s – along with engines and auxiliary power units.
It also features a Hawker 800XP business jet (N771AG), along with off-wing components, spares, ground-service equipment, tooling, records and documentation.
