Business Restructuring & Insolvency 2021 Annual Review

We served as counsel to AeroCentury Corp. and its affiliated debtors in their chapter 11 cases. AeroCentury, an aircraft leasing and sales company, provided services to various regional airlines across the globe. The debtors filed for chapter 11 to effectuate a series of sale transactions and restructure their approximately $128 million in prepetition obligations. The debtors were able to realize over $80 million from sales of various aircraft assets, and filed a chapter 11 plan that provided for a toggle between (a) a sponsored plan that contemplated go-forward operations, and (b) a stand- alone plan that contemplated liquidation of the debtors’ remaining assets. Ultimately, the debtors entered into a plan sponsor agreement that provided for an investment of $11 million. The reorganized debtors will operate the business on a go-forward basis and relaunch the debtors’ aircraft acquisition, leasing, and disposition operations. All creditor classes were paid in full, and existing equity holders shared in a portion of the equity in the reorganized debtors and a $1 million dividend. AeroCentury 20 MORRISON & FOERSTER | BRIG 2021 ANNUAL REVIEW MORRISON & FOERSTER | BRIG 2021 ANNUAL REVIEW 21