National Air Cargo Inc.’s debt-repayment plan has been approved by a federal judge, clearing the way for the struggling military-transport contractor to emerge from bankruptcy protection after more than three years, the Wall Street Journal reported. Founder Christopher Alf said that he is prepared to put more than $12 million into the upstate New York-based carrier, which filed for bankruptcy in October 2014 after the U.S. military cut back spending on Middle East operations. Mr. Alf and his wife, Lori, own the airline. The proposal from National Air Cargo officials to pay off a portion of the airline’s roughly $12.4 million in debt received approval from Bankruptcy Judge Michael Kaplan, according to a Nov. 9 order signed in U.S. Bankruptcy Court in Buffalo, N.Y. Company officials said that at least 60 percent of that amount will be paid, but the exact dollar figure hasn’t been disclosed. It is also unclear how much money Mr. Alf will ultimately contribute. Most of National Air Cargo’s debt stemmed from a roughly $10 million legal judgment won by aircraft provider Global BTG LLC in an aircraft-leasing dispute. Global BTG officials sued National Air Cargo in February 2011, saying that the company unfairly walked away from a deal to use eight Boeing 747 cargo planes that was being arranged by Global BTG.
