Warbird Information Exchange

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

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.

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.

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?