Florida-based Mammoth Freighters LLC will acquire a 50% stake in the MRO unit of Texas-based GDC Technics.
The deal will give Mammoth access to hangar space to stand up conversion lines at GDC’s Forth Worth (AFW) MRO facility for its in-development 777 passenger-to-freighter conversion programs. The investment, which includes existing debt facilities and new loans, will also pave the way for GDC’s exit from Chapter 11 bankruptcy.
The United States Bankruptcy Court for the Western District of Texas, San Antonio Division, on Sept. 22 approved GDC’s exit plan, according to a final order from the court.
As part of the exit plan, Mammoth has provided around $3.75 million in the form of a senior-secured, super-priority debtor-in-possession credit facility and will make available $13 million in new money “Exit Loans,” according to a Sept. 6 Final Basis filing.
In exchange for the investment, Mammoth replaces funding commitments from GDC’s existing lender, MAZAV Management, for a 50% stake in GDC’s MRO division post-restructuring. MAZAV will retain the remaining 50% stake. Mammoth will also gain a 25% stake in GDC’s satellite-based wireless in-flight affiliate, with MAZAV controlling a 75% stake.
Beyond the stake, GDC will provide Mammoth with hangar space for conversions and parking space for aircraft being staged for conversion. Initially, GDC will allocate two of six widebody bays to accommodate simultaneous touch labor for Mammoth’s 777-200LRMF and 777-300ERMF conformity aircraft conversions. The first 777-200LR is set to arrive at AFW in about a week, Brad Foreman, CEO of GDC Technics, told Cargo Facts. As of today, the majority of Mammoth’s 777-200LRs are in storage at Victorville (VCV) or Marana (MZJ), with the exception of unit 29742, which has been in Moses Lake (MWH) since April. All ten of Mammoth’s 777-200LRs will gradually gravitate to the airport as GDC will store them until they are converted and redelivered, according to the exit plan.
While the MRO continues to serve customers unrelated to Mammoth, it could eventually allocate multiple conversion lines to Mammoth, Foreman said.
“As we grow, it won’t surprise me to see three conversion lines going there at all times, and possibly even more depending on the demand,” Brian McCarthy, VP marketing and sales at Mammoth, told Cargo Facts.
Mammoth also plans to employ GDC for the assembly of its main cargo door, surround structure skin assemblies and other electrical systems. “Our interest in the facility was that they can do a great deal more than we originally were aware of,” McCarthy said. “This investment is about more than just touch labor or a bunch of hangar space.”
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