More Business News:
After Being Held in Default by Raytheon Aircraft Credit, Gulfstream Meets Obligations - CBL
By Citybizlist Staff
WALTHAM -- Gulfstream International Group Inc. (AMEX: GIA) said it had been held in default by its principal aircraft lessor, Raytheon Aircraft Credit Corp., but later met a Feb. 19 deadline, averting other potential defaults, according to an 8-K filing with the U.S. Securities and Exchange Commission.
Gulfstream said it is reviewing nonbinding offers of short-term debt financing to meet near-term liquidity requirements. It also has hired an investment bank to raise fresh capital from sale of equity.
The Fort Lauderdale-based airline leases 21 Beech 1900D aircraft from Wichita, Kan.-based RACC, a subsidiary of Raytheon Corp. (NYSE: RTN), headquartered in Waltham, Mass. The default on two agreements, signed in 2003 and 2006, occurred when it missed scheduled February payments.
Gulfstream did not disclose details on the money involved.
RACC then offered a Feb. 19 deadline and threatened to hold Gulfstream in default of a separate 2008 agreement if it again missed the payment.
Consequent to the payment, RACC will not press further defaults as long as Gulfstream maintains its payment schedule and presents a feasible financial restructuring plan to meet obligations. Gulfstream also is required to begin payments due under the 2008 agreement, the company said in the filing.
Form 8-K filing: http://tinyurl.com/ye2b53h
Posted Feb 24, 2010
