Evergreen, Erickson, and Collings Foundation in the news...

[Warbirdnerd]

Bankruptcy — Umpqua Bank has sale lined up, but EVA maintains it can sell the planes for more


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Evergreen Vintage Aircraft is contesting Umpqua Bank’s request to allow a potential sale of airplanes in the Evergreen Air Museum to move forward.

In a U.S. Bankruptcy Court of the District of Oregon hearing on Feb. 11, EVA attorney Nicholas Henderson expressed the company’s desire to continue working on a sale that would net a larger sum than what creditor Umpqua Bank has proposed to sell the planes to Erickson Aviation.

“We’re still in discussions with one potential buyer that was willing to pay enough so that (EVA) might yield as much as $25 million, primarily to Umpqua and some to World Fuel Services,” Henderson said.
Contested motion - Evergreen Vintage Aircraft is contesting Umpqua Bank's request to allow a sale of 15 planes for $11.8 million. EVA asserts it can sell the planes for a higher value than Umpqua Bank would receive from the potential buyer, Erickson Aviation, and is asking that sale be delayed.


When Judge Randall Dunn noted that the $25 million would seem to be a better deal than the $11.8 million Umpqua Bank has plans to sell the planes for, Henderson agreed but acknowledged there would be some “moving parts” to the deal, including a potential return of aircraft to EVA that has already been transferred out of its ownership.

“We would be looking to settle a fraudulent transfer claim,” he said.

Dunn also asked whether there is evidence that EVA’s proposed buyer, who was not named during the hearing, has readily available funds. Henderson replied that he had not verified the funds, but that his understanding was that funding should not be a problem.

“That’s vitally important: the bank has to know that if they’re going to give up a bird in the hand, the bird in the bush is just as good. It’s real money we’re looking for,” Dunn said, adding that if the postponement is allowed there will likely have to be a “drop dead date” included, by which if EVA has not completed the sale there will be consequences.

Besides Erickson Aviation, the Collings Foundation is the only other organization that has made an offer to purchase the planes. The foundation, based in Boston, offered $12 million for the planes, an offer which foundation president Bob Collings said was rejected due to the terms of the deal: the foundation would have put 20 percent down, with the remainder to be paid within 30 days. Collings said the foundation remains interested in helping the museum stay afloat.

Umpqua Bank attorney Joseph Sakay reiterated the bank’s position of requesting the $11.8 million sale to Erickson Aviation be allowed to take place.

“We’d like to proceed with this sale: we think it’s the real sale,” he said.

When asked about the museum property, which Umpqua Bank also has a secured claim on, and whether Umpqua Bank’s beliefs about the value of that property were different than EVA’s, Sakay replied that they were.

“Substantially different, your honor,” he said, “magnitudes different.”

The final evidentiary hearing on Umpqua Bank’s motion requesting the sale to Erickson Aviation be allowed to proceed is tentatively scheduled for April 3

Found it here:
http://www.pamplinmedia.com/nbg/142-new ... off-planes

[Travisd80elcam]

Any one willing to venture a guess at whom, the 25 million offer was from? My guess is either Jerry Yagen or the always mysterious Paul Allen. Also does I didn't see a list of what is part of the deal. I am assuming the B-17, P-38, and maybe the German stuff or even perhaps the Zero currently under rebuild in Washington state? This is of coarse speculation on my part. Just throwing some ideas around on the topic.

Travis

[p51]

So, which aircraft are being addressed here?
I was just down to McMinnville recently for the first time in years, gald I went because that hangar might now have as much in it the next time I get there...

[Warbirdnerd]

16 Aircraft registered to EVA:
http://registry.faa.gov/aircraftinquiry ... 1&PageNo=1

[p51]

Leapin' Lizards, the B-17, too, huh?
Wonder how they'll get it out of there? It's not flyable as they never did the mandated wing root work the FAA called for a while back...

[Rod Schneider]

Leapin' Lizards, the B-17, too, huh?
Wonder how they'll get it out of there? It's not flyable as they never did the mandated wing root work the FAA called for a while back...

It would not be all that difficult to do the AD inspection. If no cracks are found, it's not a big deal. A ferry permit would also not be out of the question.

[p51]

It would not be all that difficult to do the AD inspection. If no cracks are found, it's not a big deal. A ferry permit would also not be out of the question.

Yeah, I see the ferry permit thing, but I thought that wing spar thing was engraved in stone by the FAA, that's what I'd always heard locally when the subject of this specific B-17 comes up.
I'd love to see this bird in the air as it's been grounded ever since I've lived here.

[Steve Nelson]

I visited MAM last summer, and a volunteer told me it broke Mr. Yagen's heart to sell (the B-17 formerly known as) Doc..especially since it apparently turned out he didn't really have to, and he still had the money from the sale sitting in the bank. Maybe the opportunity to get another B-17 was just too much to pass up.

SN

[p51]

Well, that Fort is in good looking condition. I'd much rather it get the needed work and flying somewhere I can't get to it to see it fly, than sitting around collecting dust in the shadow of the Spruce Goose and few people even noticing it.

[BigGrey]

When did they quit flying those warbirds and park them for good? I was at the El Toro Airshow in 1996 when Spitfire TE356 had the gear collapse. I don't remember seeing any of them at airshows a year or two after that.
The registry lists the gear collapse as Long Beach CA but I'm sure it was MCAS El Toro.

Les

[PeterA]

Evergreen Spitfire.

Transferred to main index.

[Warbirdnerd]

I'm guessing the B-17 was not part of the 15 planes for $11 Million deal. Both of the named parties already have a B-17 and I would think the selling price would be higher if the B-17 was part of the deal.
I would think the B-17, P-38, P-40 and Spitfire sold together would fetch close to 11 Million without the other 12 planes...
I wonder which aircraft this quote refers to?

When Judge Randall Dunn noted that the $25 million would seem to be a better deal than the $11.8 million Umpqua Bank has plans to sell the planes for, Henderson agreed but acknowledged there would be some “moving parts” to the deal, including a potential return of aircraft to EVA that has already been transferred out of its ownership.

“We would be looking to settle a fraudulent transfer claim,” he said.

[StangStung]

I'm guessing the B-17 was not part of the 15 planes for $11 Million deal. Both of the named parties already have a B-17 and I would think the selling price would be higher if the B-17 was part of the deal.
I would think the B-17, P-38, P-40 and Spitfire sold together would fetch close to 11 Million without the other 12 planes...
I wonder which aircraft this quote refers to?

When Judge Randall Dunn noted that the $25 million would seem to be a better deal than the $11.8 million Umpqua Bank has plans to sell the planes for, Henderson agreed but acknowledged there would be some “moving parts” to the deal, including a potential return of aircraft to EVA that has already been transferred out of its ownership.

“We would be looking to settle a fraudulent transfer claim,” he said.

"Fraudulent Transfer" is a term of art in bankruptcy law. Essentially, it's a scenario where the Debtor transfers some asset to a third party (often a family member or business associate) for less than market value, with the intent of recovering the asset after the bankruptcy is complete. In so doing, it deprives any potential creditors of the difference between the money the Debtor received on the deal versus what the Debtor would have received had the asset been sold on the open market. It's a big no-no in bankruptcy law.

What they're saying is that the $25 million dollar deal may not really be a $25 million dollar deal. It may be a wink and a nod deal where the Evergreen gets some planes back that really should have been sold for the benefit of their creditors.

[StangStung]

And to answer your question, it seems like he's talking about the deal in general rather than a particular aircraft.

[RNDMTRS4EVR]

The B-17 is part of the deal from what I read and people I have talked to, will it happen who knows. The B-17 also does have cracks in the spars, this would be the reason it is parked. I did hear that they have all the material needed to repair them as well. Don't forget the history of the this B-17, I do believe it was the last operational B-17 air tanker when they finally retired it.