Avenger Flight Group is now a liquidating case after a substantially-all-assets sale, with the remaining debtors renamed around AF Liquidating, LLC, a plan supplement on file, and confirmation still ahead on June 23, 2026. The case began as a fast-track sale filing for a global aviation simulation and flight-training business whose debt load and customer shocks had outpaced the business: the debtors operated 11 training centers across four countries with 50 full-flight simulators and 15 flight training devices, but entered chapter 11 after A320neo-related demand pressure, major customer bankruptcies or liquidations including Spirit Airlines and Viva Air Colombia, loss of German operations, and a capital structure led by roughly $273.1 million of prepetition term-loan debt Perkins First Day DeclarationDkt. 33.
The financing and sale process were controlled from the outset by the prepetition lender group. The debtors sought a senior secured DIP package from participating prepetition term lenders, administered by Wilmington Trust, consisting of $14.5 million of new-money commitments and a $29 million roll-up, with priming liens, superpriority status, cash-collateral authority, weekly budget testing, and sale milestones that required an auction by roughly day 50, a sale order by day 55, and sale consummation by day 60 DIP Financing MotionDkt. 12. That posture matched the first-day restructuring thesis: preserve going-concern value, fund a short 13-week runway, and run a lender-backed stalking-horse sale process rather than reorganize around the legacy operating company .
After the sale, the case shifted from operating stabilization to estate administration and distribution. The debtors moved for conditional approval of a combined disclosure statement and liquidation plan that would distribute net proceeds through a litigation trust, including a 40% / 60% sharing construct between general unsecured creditors and prepetition lender deficiency claims, with impaired EDC, SIM International, and general unsecured creditor classes entitled to vote Combined Disclosure Statement and Plan MotionDkt. 302. The court then dismissed the acquired-debtor cases tied to Avenger Flight Training, LLC and Avenger Flight Group Mexico II, preserved prior orders and sale-related rights, and authorized the remaining debtors to adopt “Liquidating” names Case Dismissal and Caption OrderDkt. 455. The plan supplement filed June 2 identifies Peter Hurwitz as litigation trustee and sets the AF Litigation Trust’s governance, assets, settlement controls, and distribution mechanics, leaving the case focused on confirmation, trust funding, claims reconciliation, retained causes of action, and post-sale wind-down Plan SupplementDkt. 456.