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HomeMy WebLinkAbout1975-09-29 369 AC ORDER369 AT Introduced by Councilor Speirs, September 29, 1975 CITY OF BANGOR RIiIEJ WKDPT A th rnQ Assrynment of Accou t ;sable f the eixed Base Op t' t Beng I t tional A rssort to Ma Nat conal Bank WHEREAS, there are proceedings presently pending before the Bankruptcy Court, United States District Court for the District of Maine, Northern Division, for the reorganization of Trans -East Air, Iw., former Fixed Base Operator at Bangor International Airport, under Chapter x of the Bankruptcy Act; and WHEREAS, the City of Bangor is presently providing fixed base operation services at said Airport; and � v~A J k PC, S7 v. a WHEREAS, certain revenueshgeneratel by Ciity in providing such services have,against itsob)ection, been placed in escrow at Mame National Bank, of Portland, Maine, by Order of the U. S. Bankruptcy Judge, Conrad K. Cyr: and WHEREAS, the City of Bangor has applied to the Court for an Order directing remittance of such estrus manes for purposes of funding the City'e Fixed Base Operations at Bangor International Airport; and WHEREAS, by Order dated September 20, 1975, said V. S. 'Bankruptcy ,Judge authorized the release of said escrow monies only upon the City first having met certain conditions described therein, NOW, THEREFORE, By the City Council of the City of Bargor: _2- DRDeRED, THAT the firm of Eaton, Peabody, Bradford b ceases, legal counsel far the City in the pending baN¢uptcy proceedings, is hereby authorized and directed on behalf of the City of Bangor to execute a valid written waiver of Say and all rights of said City of Ranger to appeal or challenge said Order dated September 34, 1975, including the requirement in said Order for the future surrender of proceeds as prescribed therein; and be it further ORDERED, THAT glanders S. Jellison, Finance Director, is hereby authorized and directed to execute an irrevocable assignment to Depositors Trust Company of valid accounts receivable due by conract air carrier customers at Bangor International Airport, said receivables to total act less than $95,000 in aggregate uncollected face amount; said receivables to include only those generated during duly, August and September of 1975, none of which an the date of assignment, shall be more than sixty (60) days old; said receivables to be the obligations of ten (lo) or less of the largest contract air carrier customers (in terms of accounts receivable balances owing) of the Hanger International Airport Fixed Base Operation; none of said receivables to include obligations known to be invalid, disputed, uncollectable or Otherwise valued at less than the face amount thereof; and said receivables to be due and payable in United States currency; ORDEswu, THAT said instrument of assignment is to be in a farm approved in writing by legal counsel foe the City in the pending matter, land in a farm approved in writing by legal counsel for the Trustee in Bankruptcy in the pending proceedings and legal counsel for Depositors Trust Ccmpanyp ORDERED, THAT said Finance Director 1s hereby authorized and directed to provide for the filing with said Court of a duly executed original counterpart thersoft ... d ¢°ea 9, ORDERED, That said Finance Director is hereby authorized and directed to provide for the service on each party to said proceedings and Maine National Bank, Escrow Agent, of a duly executed original counterpart of said instrument . of assignment; ORDERED, That said Finance Director is hereby authorized and directed, in accordance with the provisions of paragraph 4 o said Court Order of September 24, 1975, to surrender to the Maine National Bank, escrow agent, immediately upon collection, all proceeds not exceeding $85,517.96, realized from the collection of said assignedaccounts receivable. ORDERED, That upon the remittance of $85,517.96 to said Escrow Agent pursuant to said Order dated September 24, 1975, said Finance Director is hereby authorized and directed to provide for the reassignment by said Depositors Trust Company to the City of the remaining uncollected assigned accounts receivable; and any excess Collections of assigned accounts to the City eµ -C to be further relieved from the requirement of further remittance to said Escrow Agent of any collections realized from said assigned receivables; ORDERED, That the Finance Director is hereby authorized and directed to insure that all such surplus accounts and collections will be credited to the accounts of the City for the Fixed Base Operations at Bangor International Airport; and be it further ORDERED, That the City Manager, the Finepce Director agd Eaton Peabody, Bradford 6 usages, legal counael,/are hereby authorized and directed to take all other necessary and proper action for purposes of compliance by the City with the terms and conditions of said Order of Court including paragraph 4 of said Court Order dated September 24, 1975. IN CITY COUNCIL 369 AC sepiesber 29,. 1975 - - Winded by adding "in the 83 D RDE R &I Of $85.,517.96" after "revenues" in the 7th line. ..Page 3-amended by substitution. Title, Motion to steed by deleting last paragraph failed by the following Authorizing Assi ruoeni�Of Acunte. He ceivable . yea dna no emote. Councilors .......... .... 9. cro Band rri, voting no: ars, Moon Ballon, Bigney, andBrocades, adult cars, Mooney, bwny of, they Fixed Base OPer at i on at Ban�ooi and adults. Councilor voting International Ai yes: Henderson. amended by Tort i0 Maine National Ha N:. inserting "and ChaIee" after of the Introduced Finance cinmthe la atter 'Regal and filed by Counsel" er in the last paragraph. AS mended, passed by the following .:.. .... yes: Ea da vote. lad,Councilors voting COnnC31ma0 yes r5on, Mo Ballad, San y aney, Hr s. HeMerecn, Mooney, Soucy dna bT:eirs. douwilor voting ftoz Gass." -" CITY CLEPK "'� DRAFT Introduced by Councilor � \ CITY OF BANGOR m (TITLE.) 1pYi�}EYy q. th [_iz1 g A rgament. of A t Recei bl f ehe,pi d„_,:, Base Operation at banger International Airport to Maine National Bank .BxiJ�a&a'6R<6cvxeilo£RhA£ikiaka`kNwaxk 0&i3s+$k}�3 ,THAff WNDBBAS, there are proceedings Presently pending before the Bankruptcy Court, United States District Court for the District of Maine, Northern Division, for the reorganization of Trans -Bast Air, Inc., former Fixed Base operator at Bangor International Airport, under Chapter X of the Bankruptcy Act; and WIBiRBAS, the City of Bangor to presently providing fixed base operation� LL.. Ge. Vy and services at said Aimportrpam4x ���.�,pia.`uJ ;(✓ ` NUgR&+$, certain �hv._ Providing such services have nbken placed i, escrow at Maine National Bank, of Portland, Maine, by Order of the U. S. Bankruptcy judge, Conrad K. Cyr; and zG/ NNURBAS, the City of Bangor has applied to the Court for an Order aarvg emittence of such escrw monies for purposes of funding the City's Stead /' y Base operations at Bangor International Airport: and *� MENTENS, by. order dated September 24, 1915, said U S. Bankruptcy 'Judge authorized the release of said escrow monies/ pun curtain conditions described therein, - - / f NOW, 71fthEroR6, By the City Council of the City of Bangor: ORDERED,. THAT the firm of :an, Peabody, Bradford 6 Veague gal counsel for the City Sw a peMing bankruptcy proceedings, is hereby aCchorized and directed on bele f [Fa City of Bangor m execute a valid 4(eitten waiver of any an: all rights f said City of Banger to appeal or he Menge said order dated September 219 including the requirement in said Order for the future surrender f peoceed �as prescribed therein; and be it further ORDERED, THAT Theodore S. Jellison, Finance Director, is hereby authorized and directed to execute an irrevocable assignment to Depositors Trust Company of valid accounts receivable due by contact air carrier customers at Bangor International Airport, said receivables Co total not less than $95,000 in aggregate uncollected face amount; said receivables to include only those generated during July, August. and September of 1975, nom of which on the date of assignment, shall be more than sixty (60) days old; said receivables to be the obligations of ten (10) or lase of the largest contract air barrier customers (in terms of accounts receivable balances owing) of the Bangor International Airport pbxd Base operation: cone of said receivables to include obligations known to be invalid, disputed, uncollectabte or otherwise Valued at less than the face amount thereof; and said remrvables to be due and payable in United States currency; ORDERED. THAT said instrument of assignment is to be in a form approved in writing by legal counsel for the City in the pending matter, and in a form approved in writing by legal counsel for the Trustee in Bankruptcy in the pending proceedings and legal counsel for Depositors Trust Compmryl ORDERED, THAT said Finance Director is hereby authorized and ditected to provide for the filing with said Court of a duly executed original counterpart thereof; ORDERED, TMT said Finance Director is hereby authorized and directed to provide for the service on each party to said proceedings and Maine National Bank, Escrow Agent, of a duly executed original counterpart of said instrument of assignment' ORDBRED, TMT said Finance Director is hatch authorized and directed to provide proceeds[ unto for the continued collection of/said accounts receivable by the City of Bangor on the condition that, prior to release of any portion of the escrowed funds, said proceeds are to be surrendered to said Escrow Agent, Maine National. Bank, immediately upon collection; SEEDBED, THAT upon the remittance to said Escrow Agent pursuant to said order dated September 24, 1975, said Finance Director Is hereby authorized and directed to provide for the reassignment by said Depositors Trust Company to the City the remaining uncollected assigned accounts receivable and any excess collections of assigned accounts the City to be further relieved from the requirement of further remittance to said Escrow Agent of any collections realized from said assigned receivables; ORDERED, THAT the Finance Director is hereby authorised and directed to insure that all such surplus accounts and collections will be credited to the accounts of the City for the Fixed Base Operations at Bangor International Airport; and be 1t further ORDERED, THAT the City Manager, the Finance Director, and Eaton, Peabody, Bradford & Verges. legal counsel, are hereby authorized and directed t0 take all other necessary and proper action for purposes of compliance by the City with the terms and conditions of said Order of Court dated September 24, 1975. 9. ,aORDERED, That said Finance Director is hereby authorized and directed to provide_;for the service on each party to said proceedings and Maine National Bank,: Escrow Agent, of a duly executed original counterpart of said instrument of assignment; - 1 ORDEREDi That said Finance Director is hereby authorized and directed, in accordance with the provisions of paragraph 4 of said Court Order of September 24, 1975, to surrender to the Maine National Bank, escrow agent, immediately upon collection, all proceeds not exceeding $85,517A6, realized from the collection of said assigned accounts receivable. _ ORDERED, That uponthe remittance of $85,517.96 to said Escrow Agent pursuant'. to said Order dated September 24, 1975, said Finance Director is herebg'; authorized and directed to provide for the reassignment by said Depositors' Trust Company to the City of theremaininguncollected assigned accounts receivable; and any excess collections of assigned accounts to the City to be further relieved from the requirement of further remittance to mittanceto said Escrow Agent of any collections realized from said assigned receivables; ORDERED, That the Finance Director is hereby authorized and directed to insure that all such surplus accounts and collections will be credited to the accounts - of the City for the Fixed Base Operations at Bangor International Airport'; and be it further ORDERED, That the City Manager, the Finance Director, and Eaton, Peabody, Bradford S Veague, legal counsel, are hereby authorized and directed to take all other necessary and proper action for purposes of compliance by the City OBOZREO• ��u�y NEWT said Fiance Director is hereby authorized and directed to provide for the service on each party to said proceedings add Maine National Bank, Narrow Agent, of a duly executed original counterpart of said instrument of assign a t; ORDEPED,.. THAT said Finance Director is hereby authorized and directed to provide for the continued collection of proceeds from said accounts receivable by the City of Bangor an the condition that, prior to release of any portion of the escrowed funds, said proceeds are to be surrendered to said Escrow Agent, Maine National Bank. Lmediately upon Collection; DADEBID• TEAT upon the remittance to said Escrow Agent pursuant to said order dated September 24, 1975, said Finance Director is hereby authorized and directed to provide for the reassignment By said Depositors Trust Company to the City the reneining on - collected -collected a signed accounts receivable add any excess collections of assigned accounts the City to be further relieved from the requirement of further remittance to said Decade Agent of any collections realized Eras said assigned receivables; oams ED, THAT the Finance Director is hereby authorized and directed to insure that all such surplus accounts and collections will be credited fettle accounts of the City for the Fixed Base operations at Bangor International AiepoKd and be it further OEDEBED, THAT the City Manager, the Finance Director, and Eaton, Peabody, Bradford s usages, legal counsel, are hereby authorized and directed to take all other recossary and proper action for purposes of coupliance by the City with the terms and conditions of said Order of Court dated September 24, 1975.