Global Aviation Holdings Inc. won bankruptcy-court approval to sell itself to its lender, a unit of Cerberus Capital Management, subject to higher bids at a March auction, the Wall Street Journal reported today. Bankruptcy Judge Mary F. Walrath on Friday authorized Global Aviation to hold a March 19 auction, where the Cerberus unit will lead off the bidding. The Cerberus unit, Cerberus Business Finance LLC, is offering to sponsor Global Aviation's restructuring plan. If it wins the bidding, it will forgive at least some of the debt it holds in exchange for all of the new equity in the restructured charter airline operator. Court papers show would-be buyers' bids, due March 14, have to include at least $35 million in cash earmarked to repay Cerberus. The buyout firm is owed $39 million in pre-bankruptcy loan debt and also provided more than $50 million in bankruptcy financing to cover the costs of Global's chapter 11 case, its second in as many years. Judge Walrath will consider approving the winning bid at a March 25 sale hearing, according to court papers.
