Southern Air, moving to Kentucky, garners bankruptcy agreement

Bloomberg News Southern Air Holdings, which is moving its corporate headquarters from Norwalk to the Cincinnati/Northern Kentucky International Airport in Kentucky, has won agreement from the bankruptcy judge to sign an order approving the cargo airline's modified reorganization plan. The changes to the company's plan, made at a confirmation hearing Thursday, resolved objections from the official creditors' committee. Southern Air told the state Department of Labor in January that it would lay off 120 workers this month, and a company spokeswoman said at the time that it had a plan to relocate "certain operations." Originally, unsecured creditors with $101 million in claims were told to expect a recovery of 2.6 percent to 3.1 percent by splitting up $2 million in cash. As revised, the plan funds a trust for unsecured creditors with $2.5 million. Unsecured creditors were told to expect a recovery of 2.4 percent to 2.6 percent. Acquired in 2007 by Oak Hill Capital Partners, Southern Air filed for bankruptcy reorganization on Sept. 28, 2012 after working out a plan giving a $17.5 million term loan and 82.5 percent of the stock to secured lenders in return for $295 million in debt. The recovery by the lenders was originally projected at 11.9 percent to 20.6 percent. Read more: http://www.stamfordadvocate.com/news/article/Southern-Air-moving-to-Kentucky-garners-4359033.php#ixzz2NlSORsOj