#Seaborne Committee Formation Meeting Set for Jan. 23, 2018 at 10:00 a.m.

Seaborne Airlines has filed for Chapter 11 bankruptcy protection to complete a sale to Silver Airways, or a higher bidder, through a bankruptcy auction. See my Filing Alert: Puerto Rican Seaborne Airlines Files Chapter 11 in Delaware for details.

The Committee Formation Meeting

The Forecast?

Mette K.

#Hobbico Committee Formation Meeting Set for Jan. 22, 2018 at 10:00 a.m.

Hobbico, Inc. has filed for Chapter 11 bankruptcy protection to continue a sale process started late last year.  See my earlier post: Filing Alert: Hobbico Files Chapter 11 to Complete a Sale Process.

The Committee Formation Meeting.

The Forecast?

Mette K.

Filing Alert: Hobbico Files Chapter 11 to Complete a Sale Process

Illinois-based Hobbico, Inc. sought chapter 11 bankruptcy protection yesterday in Delaware. Its goal? To continue a sale process started late last year.

The Bankruptcy Sale

The company says it is “actively” discussing a sale with potential buyers. (Translation: It does not yet have a commitment from anyone.) Hobbico’s prepetition lenders are financing the sale effort. They are calling for the following sale schedule:

  • Sale procedures by March 9;
  • A bankruptcy auction by March 26; and
  • A sale closing by April 5.

Events Contributing to the Bankruptcy

The company blames its bankruptcy on various events, including:

  • High leverage due to various acquisitions;
  • Lagging product innovation;
  • An underdeveloped e-commerce platform;
  • An increasingly competitive drone market;
  • Vendor issues; and
  • Depressed sales.

These factors eventually triggered defaults with the company’s secured lenders. They also lead to a deadly spiral of constrained liquidity, inventory shortages, and falling sales.

Additional Information

JND Corporate Restructuring is the claims agent. The case is assigned to Judge Kevin Gross (case number 18-10055 (KG)). Information about the Committee formation meeting is available here.

Company Background

Hobbico designs, manufactures, and distributes drones, radio controlled vehicles, and other cool hobby products. I wanted to post pictures for you, but I can’t find any on their website. (Underscoring my earlier point about their underdeveloped internet presence.) But the website does identify many of their 250 brands. These include Axial, ARRMA, Revell, Estes, Great Planes Model Manufacturing, DuraTax, and Top Flite. Based in Illinois, the company has operations and facilities in California, Colorado, Illinois, and Nevada.axid9060

Tower Hobbies is the company’s retail arm. It is also their highest margin distribution channel. Revell, Estes-Cox, and United Model make up its mass market business. And Great Planes represents the company’s wholesale operations. Besides its own trademarks, the company licenses various trademarks.rise0207

Wait…!  Their drones and other toys are featured on the Tower Hobbies retail website. Too bad Christmas is over….

Mette K.

Filing Alert: Puerto Rican Seaborne Airlines Files Chapter 11 in Delaware

San Juan-based airline Seaborne Airlines filed for chapter 11 protection today. The corporate debtors are SeaStar Holdings, Seaborne Virgin Islands, and Seaborne Puerto Rico.

A Pending Sale to Silver Airways

A statement is available on the company website. The bottom line? Seaborne Airlines is being sold to Silver Airways. The sale is subject to an auction and court approval. And if it closes, the sale will create the industry’s leading regional carrier in the Caribbean, Florida, and the Bahamas.

Meanwhile, the company plans to continue normal operations. It is supported by a new, $4.2 million credit facility.

“While the Company’s business has enjoyed a remarkable recovery since the 2017 hurricanes, the financial stress . . . coupled with legacy liabilities have made it necessary to seek reorganization . . . . Our day to day operations will continue as normal, and this process will be in the best interests of all of our customers and stakeholders.” 

-Ben Munson, Acting CEO of Seaborne Airlines

#SafetyFirst

If you are planning to fly Seaborne, the company wants you to know that passenger service and safety remain top priorities. Good to know!

And existing flights should continue without interruption. Also good information, especially if you are heading south in search of warmth. The 10-day weather forecast for the Caribbean?  Mostly sunny with a high of 78 degrees.  And in Delaware?  Early ice, with highs of around 40 degrees.

Additional Information

The case is pending in Delaware, Case #18-10039. The claims agent is Rust Consulting/Omni Bankruptcy.  For more information, watch their website. Or you can contact the company at:

Email: media@seaborneairlines.com
Phone: 787-946-9003

Mette K.

The First Committee of the New Year? Rentech. January 3rd at 10:00 a.m.

Rentech WP U.S. Inc. filed for Chapter 11 bankruptcy protection in Delaware on December 19th.  More information is available here.

The Committee Formation Meeting

The Forecast

pexels-photo-375880

The weather forecast for Wilmington that day?  Mostly sunny with a high of about 30 degrees.

 Mette K.