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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 c (TITLE,) &thotfafm the city manaeer to Accept a Settlement of $2.878.57 from Main, n •aA ilau mrry Clew ofe$7.636.�9onAgaimC,Haxaiian Aiilia¢a / /,A�� $ I�.