US-based narrowbody conversion and MRO specialist PEMCO WORLD AIR SERVICES filed for Chapter 11 bankruptcy protection. In a statement concerning the filing, Pemco CEO William Meehan said: “Pemco’s operations have been impacted in recent years by a number of conditions, including a slowdown in the number and magnitude of MROs, a decrease in airplane conversions in Dothan, and the overall impact of the economic downturn.”
Pemco is owned by US-based private equity firm Sun Capital Partners. Debtor-in-possession financing will be provided by Avion Services Holdings, another Sun Capital subsidiary. Pemco will continue to operate during the restructuring period, but Sun Capital is “commencing a marketing process to determine if there are other interested parties.”
Pemco has facilities at Dothan, Alabama (military MRO and commercial modification), Tampa, Florida (large jet MRO services), and Cincinnati/Northern Kentucky Airport (regional aircraft MRO), but announced that it “is reviewing its options at its Dothan, AL, facility and anticipates a decision will be made shortly regarding the potential for a prompt closure of the facility.” According to a report in the Bloomberg news service, in its filing, Pemco listed assets and debts of $50 million to $100 million each.
Like This Post