In addition to the RSA that outlines treatment for a reorganization plan, the bondholders are providing USD 300m in debtor-in-possession (DIP) financing to fund the Chapter 11 case. Judge Sean Lane of the US Bankruptcy Court for the Southern District of New York is overseeing the case and has scheduled a first day hearing for today at 4pm ET.

The RSA outlines treatment for a plan that would see senior secured noteholders and convertible noteholders get USD 840m of secured notes as well as new common equity in the reorganized company. The plan contemplates a new exit revolving credit facility to repay the prepetition revolver. Additionally, the plan includes a fully backstopped equity rights offering through which the debtors will raise USD 350m of new common equity.

In addition to the RSA and DIP, the company also filed a motion to sell 23 aircraft to G.A. Telesis LLC for an aggregate base purchase price of USD 518.9m.