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HomeMy WebLinkAbout1975-11-28 47 AD ORDER47 AD Introduced by Councilor fallen, Novembet 38, 1975 CITY OF BANGOR (TITLE.) (PrUr haticias Action_ of counsel in. Indicating the city's . ,__,,,_ ____,___C pkeptto the Bankruptcy Court Order of movenber2at.1975 BY the Caw CaN of the City ofBanpor. ORDERED, - TMT the City Council hereby ratifies the action of Eaton, heebedy, Bradford and Veague in indicating to the BapAruptcy Court the City's agreement to the entering of the November 38, 1975, Orderofthe Bankruptcy nudge far the United States, District Court far the District of Maine, Northern Division relating to the continued operation of F.B.O. 47 AB IN CITY COUNCIL November 28, 1975 1`3 This,ordee was received under suspension O R D E R of the rules by the following yes and no vote: ;Councilors voting yea: Ballou, Title, Bigney, Beountee, Finnigan, Gass, Ratifying Action of Counsel in Indicating Henderson, Mooney, Soucy and Soulas. Than passed by the following yes and tba City;a,cojae9t.jq,jhe H?!.S Rtgi.Gourt no vote: Councilors voting yes: Order of November 28, 1975 Ballou, Bigney, Brountas, FinhSgw, Gass, Henderson, Mooney, Soucy ani ....................................... Soulas. q �/. CITY CLI R. ,.d I/�q}}I ��I,�npp�I$$rrodufF//p a file CITERI( Councilman h®. 4'7 H� Introduced by Councilor _ CITY OF BANGOR (TITLE.) (Orber, - Y'. ..-. °t°.Zc�.0 �41. (9„�i 4a „ Lx z&,14'7 d- aptA City Cw+ or the MY OfBm -' ORDERED, �'"/✓ g L T9T ,/t-Y4i t-d8^^ctif /i�w,�� %may WV' h _ ORDER. Title, n4ohccceeedenddlleod/�(�p/y councilman C LE.C'/C IN 9'NF. DISIRiC'k LJNIN UP RIF II NJ III SIA'ILI POR THE DISTRICT OF P [N¢ NORTHERN DIVISION In the Natter of In Proc edings for Reorganization TRANS EAST AIR, INC. _ of a LO potation Under Chapter X Debtor No. B7t 2451N0 ORDER PROVIDING FOR THE CONTINUED OPERATION 0P P00 On [M1e 'Application of Depositors TrvatCamp y and the Trustee of [M1e Debtor for an Order Approving Plan for Interim Op ration of Fixed Base Operation at Bangor international Airport,' file November 10, 1975, and j 'Response of City of Bangor to Interim Operating Plan Proposed Jointly By Depositors Trust Company and Trustee,' filed Nov ober 11, 1975, heard by the court on November 11, 1975; and on the 'Complain to Vacate Stay Order of October 1, 1915,' filed by the City of Bangor [C ry] on November 21, 1975, as amender November 25, 1975 by the filing of vritt n verification of the rati- fication by the Bangor City Council of the £ilio of such complaint, and by the filing on November 25, 1975 of various props ala made by counsel for the City, without prior approval by the Bangor City uncil, relative to suggested interim operating terms and conditions: and on t e proposed form of order agreed to by counsel for the City and for the T stet, filed on November 26,. 1975; the court having heard the arguments and epnesentations of counsel for the Cloy, Depositors Treat Company [Rank]. Earn , Page Airvays, Inc. Page] and the Chapter X trustee [trustee] In chambers on November 26, and 25, 1975; and the court having read the plead Inge, the of rementioned proposals of the attorneys for the City and the proposals of the Trustee and of the Bank for continuing the fined base operation [PBOj at Ba Nor International Airport MBIA] from and after 12:00 o'clock midnight on ovember 50, 1975; and an all of the proceedings had before the court the run, I make the following findings of fact; d It L I.1 IIs r..u( Igen wd. nrrl nt r.rr •I ..t n n nl Iln Inn nr NIA Ir in rhe best interests of all Pnrtler to thus✓ yr rr. d I car: and 1 essential to the protection Of the going-COnc T value slid integrity of the assets and business of the debtor and Tf its reorganization: 2.) All parties to the proceedings and Page a been afforded an oppottonlry to evidence their willingness aI ability to continue the FW an in interim heels commencing oece//��bb at 1, 1975; 3.) Neither Page nor any party to the pros stings, except the City, has evidenced a willingness and ability to do so On terms which are within the discretionary power of the cou/ft to permit, without irreparable injury to the rights of parpea yet to be fully determined; L.) the City, which is presently conducting the FBO, having determined through its C1ry Council on October 6, 1975 that it was unwilling to continue to operate, under the aegis of }n Management Agreement with the Bank and court orders entered October 13, 1972 and July 1, 1975, and that it would abandon theFW ae f D center 1, 1975, row seems auNoriaet ion to vovduct the PBO for f tM1ex ninety -day period; 5.) Bine the inftletion by the Blink of is complaint for declaratory judgment the court has attempted to royal this litigation forward, so as to enable resolution of the many complicated Issues which wet be dealt with before the feasibility of relAIrganiaation and the true value of the assets and business of Trane -East can be determined; but the Insistent Sntervwtloe Of problem relating to the continued operation of the facility have preoccupied the tof the parties and of the court to such an extent that the programs of the litigation has been alamd substantially; 6.) It to vital that the going -concern alue of the FBO business be preserved while the litigation of the Bring claim to the FBO aM related issues pretends; 7.) Interception of FBO services at B could renter substantially valueless all of the valuable omen t rights of the .debtor with Exavn and the City, leaving then City, as landlord, in actual control of facilities Over which the debtor claimleasehold and other contractual rights extending to 2003 A.D.; 2 8.) The Chapter % trustee has bran unable tr us t.r [hv requisite r, souvoa with xhleb to arrange or assure ouuimed fno operations, due to the Impecunious state in which his preJeoesxnr in right (Trans-East)was left following the seizure and retention of its business and assets by the Bank and the City, and because it is Impossible for the trustee to attract new capital until the toaster - Ing legal contentions of all parties in and to the various PBO operating rights. have been resolved; 9.) The Bank objects to certain aspects of the interim operating arrangement provided for herein; Exxon has taken no position with aspect to It; the Chapter % trustee and counsel for the City have evidenced their consent lo.) Me court has been assured by Page that -a ninety -day period would be sufficient to enable it to appraise the prospects for profitable _ operations at BIA and to evaluate the extent of Its interest in can- o -ducting ductingthe Pao at BIA, provided Page receives full and prompt coopera- tion from the City in theprovision of all necessary retards and documentation pertaining to the PBD as may be. required to enable such evaluation; 11.) The Cit M1as d to to full and City agree coopers y promptly xttM1 Page to that end, and with such other interested parties as the court shall .j. determine entitled; it being expressly provided that failure so to do shall constitute a violation of the terms of this order and shall be deemed, inter elle, grounds for extending the Interim operating conditions of this order, am the court my deem appropriate; 12.) The court M1as considered all of the various interim operating proposals, as well as thin objections thereto, and has determined in the circumstances that the previous stay orders of the court. including - those of October 13, Hyl, July 1, 1975, September 24, 1975, and October 1, 1975 should be end they hereby are modified so as to permit the continued operation of the PRO at BG from November 30, 1975 through March 3, 1976 as the terra aM condluions hereinafter set forth; q . is -3- II,I I1 �. I.. ul,I 1n mrd„rs ha fatul ora tn4red Li those w,I"J Pric ..pn II Irar, a Li full force and affect until furW,n order. A. The City shall conduct the FRO, as hereinafter prescribed, in a retake[. capacity from November 30, 1975 through march 3, 1976, unless sooner relieved by further order of this court. B. The City shall be permitted to make all necessary management decisions operation. provided however, that it may neither terminate n or doting such spat ever initiateany service at BTA without prior court authorization C. The City shall account fully to the Court In writing on a nontbly basis as to the conduct of cM1e PRO, not latex than twenty (20) days fr om the end of the preceding moth. D. During such operation all pre-existing rights of the parties shall be fully preserved and the running of all notice, default, redemption and like periods shall be and [main tolled. B. no caretaker operation herein preset shall not be held to canatl- cute a waiver orrelease by the City of any right it may now have or hereafter to these proceedings: all such rights bet" deemed acquire against any patty expressly reserved. retain all revenues generated F. The City SM11 bear any leasee and mot during such operation, except to the extent that the revenues thus generated are determined by the tort to be the property of another. G. Insofar as it shall later be determined by the court that there shall have been a preservation or enhancement of assets of the estate resulting from the pBo operation hereby ordered, the City my seek authorization to apply to the court for indemnification for any losses austainerd by it in such oilseeds. Any both claim by the City my be determined allowable and entitled to such priority as to the court shall appear appropriate. N. Me City and Rxxon shall be relieved of further obligation. As previously ordered, to escrow Bxxmgymat proceeds claimed by either the Bank or the Trustee; but nothing herein contained shall relieve the City of the duty to account, as directed by the court, for any and all funds received and expelled' during euob .mrtinueJ operation. 1.. The City shall not be relieved of the rensk P'ment to replenish the July 1, 1975 escrow, fund in accordance with Lis order of September 14, 1975. - .. J. Page Airways and any other person or party approved by the court shall be accorded prompt and convenient access, upon oral or written demand. to such of the books of account, payroll records, customer invoices, radials, billings and other relevant Information in the possession. or under the control of the City as key relate directly or indirectly to the peat, present or future operation and status of the PBO at BIA; provided however, that Page and any other per or party permitted to examine or receive such information shall be subject to all of the restrictions upon the use of such information as are contained in a protective order previously entered herein.. K. The City shall inform the court, Page Airways and all other parties, .within 45 days hereof, whether Page would be acceptable to the City as an PAO operator at BIA: provided however, that the reorganization court shall finally determine the reasonableness of any such -objections. I. Should Page or any other fixed base operator be found acceptable by the Court, the court my permit it to coemence FBO operations under the terms and coedltioos of the existing lease, subject to such chance therein as only be approved by the Court, the City and the Trustee. N. Wring such interim operation., the City and Exxon may contract directly - for the provision of fuel and services; and neither shell make use of or be bound by the term and conditions of any agreement or contract between Exxon and the debtor. N. Exxon and the City shall be forever barred from asserting any right - either may have or acquire, during and by virtue of such interim operation, to treat the failure of the debtor or of the trustee to perform the obligation imposed upon Treas-East under Its contracts with Exxon as a breach or as a ground for estoppel, waiver, damages or terninatlaq nor shall Exxon be allowed to assert any such contentions as against the Bank. - 0. During such interim operation, the City shall provide such PEO -type Services as the fueling of aircraft and the rendering of ground services to transient international aircraft; provided however, that the City may be excused -5- .Inr ln¢ -1-1'11 Is tr Do -1111, vl Lm li.m 11.• .1u 1. n.n fNu p.� eq iv iron nl OW _ npu rettnll ol'ISlylrt rrLnol, xvjoIkj4 rup+tr uOl .vL 111.mntek 44 1'vlte,-on prior application to the court. - Dated at deeper, Maine this 28th day of November, 1975. C. U. B. BankrvPtrY ie 1 coaifl fli'd -JIM J,m 131.a o0y, M1d.,u......,..... 1111.... 1111......__ _... 69