ACY - AeroCentury slumps 40% after filing petition for Chapter 11

AeroCentury (ACY) plummets 40% after-hours in reaction to an announcement that the company and certain of its subsidiaries have commenced a voluntary case under Chapter 11 of title 11 of the U.S. Code in the U.S. Bankruptcy Court for the District of Delaware. The Company has determined that the Chapter 11 process is the most effective next step to resolve its outstanding indebtedness and to continue in the regional aircraft business in order to preserve enterprise value.AeroCentury will continue to operate its business as “debtor-in-possession” under the jurisdiction of the Bankruptcy Court.The Company’s portfolio assets, operations and interaction with lessees will remain unchanged, and it intends to pay vendors and suppliers for goods and services received and pay its employees in the usual manner. ACY seeks a variety of “first day” relief, including authority to continue utilizing and maintaining its existing cash management system and authority to pay its employees in the

For further details see:

AeroCentury slumps 40% after filing petition for Chapter 11