HomeMy WebLinkAbout2004-03-22 04-97 ORDERCOUNCIL ACTIon
Item no. oa97
Date: a3 2L-04 ,
Item/Subject: order, Authorizing the City Manager to Accept a Settlement of $2,878.57 from
Argo Partners for an Unsecured Bankruptcy Claim of $7,476.80 Against Hawaiian Airlines.
Responsible Department: Airport
Commentary: Hawaiian Airlines filed bankruptcy on March 21, 2003. The City fled a proof of claim
for $7,476.80 for amounts due Bangor International Airport for services rendered. Argo Partners, an
investrnent firm specializing in the buying and selling claims of creditors of Chapter 11 and Chapter 7
bankruptdes, has offered a cash payment of $.385 on the dollar for this unsecured claim against
Hawaiian Airlines. The payment would be $2,878.57.
Payments on claims for recent Airline bankruptcies have netted from nothing to $.075 on the dollar. In
addition, claims generally take two years or more to settle. By accepting Argo Partners offer, the
Airport knows the amount that will be realized and will have the cash in hand.
Rebecca Huno
Department Head
Manager's Comments:
This has been reviewed and is recommended by the Finance Committee.
City Manager
Associated Information:
Finance l6irector
Legal Approval: _
ity Solicitor
Introduced for
X Passage
_ First Reading
Referral Page -1—of 1
M-97
Aseigoed to Councilor Allen M+rch 22. 2006
CITY OF BANGOR
(TITLE.) Order, Authorizing the City Manager to Accept a Settlement of $2,878.57 from Argo
Partners for an Unsecured Bankruptcy Claim of $7,476.80 Against Hawaiian Airlines.
WHEREAS, Hawailan AlHlnes, Inc. Bled for bankruptcy on March 21, 2003 at which time it owed
the City of Bangor $7,476.80; and
WHEREAS, Argo Partners; has offered to purchase the proof of claim for $.385 on the dollar,, and
WHEREAS, this amount compares favorably with the amounts receWad by the City in otter
bankruptcy actions.
NOW, THEREFORE, BE IT ORDERED BY THE CRY COUNCIL OF THE CITY OF BANGOR THAT
The City Manager is authorized to accept a settlement of $2,878.57 from Argo Partners for an
unsecured bankruptcy daim of $7,476.80 against Hawaiian Airlines.
IN an CO cm
loo a 22. 2004
Passed
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