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Pan American gains closer for 2014 return
New deal gives Pan American needed ground for 2014 market return
By: Molly Blake - Paa Media Relations
Tuesday - October 22, 2013
Pan American has signed an exclusive agreement with Eaton –Texas International of Houston Texas to acquire its equity stake in the assets of the former Ryan International Airline, which was formally based in Rockford, IL. and was subsequently acquired through participating in a Federal Bankruptcy liquidation in February 2013 with AJet Holdings of Las Vegas, NV who was awarded the assets and intellectual matter of the defunct airline.
Many attempts have been made throughout the preceding months to collaborate with various members that were involved with the current holder of the assets to resurrect the airline under the auspices of different business models, but stalled out many times over while wasting much needed valuable time to properly align the operations with currently placed executives, needed to properly operate any airline scenario according to FAA mandated regulations.
Pan American was subsequently invited to considerations that were extended by Eaton-Texas management approximately 2 months ago, when concerns began to amass within the portfolio of investors when needed action was faltering with FAA and DOT procedures that called for certain actions to take place following the February bankruptcy sale of the airline’s assets. Additionally, concerns grew more elevated when various financial conditions were going unmet by mid-summer of this year, and a voracity of Federal allegations being levied against a managing principle connected AJet Holdings was convicted of all charges and consequently sentenced to 30 months in Federal Prison.
Commencing in September of this year, investors held rally with the managers of Eaton-Texas, and instructed them to force a liquidation of their investment connected with the Ryan assets. Negotiations commenced with Eaton-Texas in late September 2013, and were formally ratified and approved by both members after final terms were adjusted and amended in the final purchase agreement reaching late into evening hours of week ending October 20, 2013.
This acquisition will position Pan American with the needed certification required to operate its’ planned FAR Part 121 service, as they begin preparations for market entry of their earlier forecasted 2014 timeline. However, formal approval by both the FAA and the DOT will ultimately be the deciding factor of when the carrier can begin to operate once again. Follow Pan American Media for further upcoming details associated with this purchase.