AeroCision is now on a liquidation track after a failed or superseded prepackaged reorganization path gave way to a sale of substantially all assets and a wind-down under an amended combined plan. The debtors began the case on July 31, 2023, with a prepackaged restructuring proposal after COVID-era aerospace demand disruption, manufacturing problems, supply-chain pressure, labor shortages, customer inspection changes, and covenant defaults strained an aerospace components business that supplied GE Aviation, Pratt & Whitney, Rolls Royce, military programs, and power-generation customers; the first-day declaration tied the filing to that operating decline and a levered capital structure that included first lien, second lien, and superpriority debt facilities secured by substantially all personal property First Day DeclarationDkt. 2.
The original filing posture contemplated an expedited balance-sheet restructuring, supported by a Prepackaged Plan Disclosure StatementDkt. 15 and a $12.5 million DIP financing arrangement with Citizens Bank and other lenders described in the first-day materials. That path shifted as the case progressed: by January 2024, the debtors were pursuing an amended combined disclosure statement and joint chapter 11 liquidation plan after a sale process in which BG Acquisition bought substantially all assets for $40.2 million, closing on November 21, 2023 Amended Combined Plan and Disclosure StatementDkt. 286.
The current restructuring posture is therefore estate administration, claim reconciliation, and distribution mechanics rather than operating-company emergence. The amended liquidation plan places Priority Non-Tax Claims and Other Secured Claims as unimpaired with projected full recovery, while First Lien Claims and General Unsecured Claims are impaired with recoveries to be determined through the wind-down; the plan also provides for a plan administrator to oversee remaining asset liquidation, claims administration, and distributions . A later amended plan supplement revised the plan administration agreement, indicating that the near-term case work had moved into implementation architecture for the liquidation vehicle rather than a renewed going-concern restructuring .
