AeroCentury Corp. Announces Bankruptcy Orders And Receipt of Going Concern Audit Opinion
April 26 2021 - 8:00PM
AeroCentury Corp. (the "Company") today announced orders entered in
the chapter 11 bankruptcy case covering it and certain of its
subsidiaries in the United States Bankruptcy Court for the District
of Delaware (the “Bankruptcy Court”) as well as receipt of an audit
opinion with going concern qualification.
Bankruptcy Orders Entered Regarding
Continued Funding and Auction Sale
On April 22, 2021, the United States Bankruptcy
Court for the District of Delaware (the "Bankruptcy Court") entered
an order authorizing and approving the funding of AeroCentury
Corp.'s ("AeroCentury") chapter 11 bankruptcy cases on a final
basis. This final order authorizes AeroCentury's continued
access to funding for its business operations and restructuring
process, to the extent that such funding is available. On the
same date, the Bankruptcy Court entered an order authorizing and
approving marketing and sale procedures with respect to the sale of
some or all of AeroCentury's assets. AeroCentury's
court-supervised sale process requires any bids for its assets to
be submitted by 5:00 p.m. on May 17th, an auction on May 20th
(should one be required) and a hearing before the Bankruptcy Court
to consider approval of the results of the sale process at 2:00
p.m. on May 25th. B. Riley Securities, Inc. is advising
AeroCentury in connection with its ongoing marketing and sale
process and Morrison & Foerster and Young Conaway are acting as
legal counsel to AeroCentury in its bankruptcy proceeding.
Receipt of Audit Opinion with Going
Concern Qualification
Pursuant to the disclosure requirements of the
NYSE American Company Guidelines Sections 401(h) and 610(b), the
Company is reporting that its audited financial statements for the
fiscal year ended December 31, 2020, included in the Company’s
Annual Report on Form 10-K filed with the Securities and Exchange
Commission on April 15, 2021, contains an audit opinion from its
independent registered public accounting firm that includes a
statement regarding substantial doubt of the Company’s ability to
continue as a going concern. This announcement does not represent
any change or amendment to the Company’s financial statements or to
its Annual Report on Form 10-K for the fiscal year ended December
31, 2020.
About AeroCentury: AeroCentury
is an independent global aircraft operating lessor and finance
company specializing in leasing regional jet and turboprop aircraft
and related engines. The Company's aircraft are leased to regional
airlines and commercial users worldwide.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
The statements herein regarding the Company’s
plans to seek and obtain funding for its business operations and
restructuring process and sale of some or all of its assets
constitute “forward-looking statements” as defined by the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements are based on projections and assumptions made by
management of the Company, are not guarantees of future performance
and are subject to certain risks, uncertainties and assumptions
that are difficult to predict or control, including the
unavailability of funding on terms favorable to the Company or at
all and the absence of potential buyer interest to purchase some or
all of the Company’s assets. Because such statements involve risks
and uncertainties, the actual results and performance of the
Company may differ materially from the results expressed or implied
by such forward-looking statements. Given these risks and
uncertainties, readers are cautioned not to place undue reliance on
such forward-looking statements. Additional information concerning
certain risks and uncertainties that could cause actual results to
differ materially from those projected or suggested can be found in
the Company’s filings with the Securities and Exchange Commission,
copies of which are available from the SEC or may be obtained upon
request from the Company.
Harold M. LyonsChief Financial Officer(650)
340-1888
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