AeroCentury Bankruptcy Plan Paying Creditors, Shareholders OK’d

Aircraft lessor AeroCentury Corp. received bankruptcy court approval for its plan to pay secured and unsecured creditors in full and hand a majority stake in the company to a group of investors.

AeroCentury’s plan, approved during a virtual hearing Tuesday, gives existing shareholders a total of $1 million in cash and 35% of the common stock in the reorganized business. A group of individual investors will receive the remaining equity in exchange for contributing $11 million.

AeroCentury filed the bankruptcy plan shortly after a series of sales, including an $83 million sale of aircraft to secured lender Drake Asset ...