Avenger Flight Group, LLC and its affiliated debtors (Case No. 26-10183, Judge Mary F. Walrath) stand at plan confirmation: on June 23, 2026, the Delaware bankruptcy court entered an order confirming the debtors' Combined Disclosure Statement and First Amended Plan of Liquidation, steering the estates into a litigation-trust wind-down after substantially all operating assets were sold in May 2026. Confirmation OrderDkt. 490
The cases began on February 12, 2026, when the Fort Lauderdale-based aviation simulation and flight training group—operator of 11 training centers across four countries running 50 full-flight simulators—and 20 affiliated debtors filed coordinated Chapter 11 petitions. Voluntary PetitionDkt. 1 Distress was the product of debt-funded expansion colliding with industry-specific shocks: the 2022–2025 bankruptcies and liquidations of major customers Spirit Airlines, Interjet, and Viva Aerobus Colombia, A320neo groundings tied to Pratt & Whitney engine inspections that suppressed training demand, the loss of the debtors' German operations after simulator-lease defaults, and accounting irregularities uncovered by post-2024 management. In late 2025 the prepetition lenders displaced the board and installed Lawrence Perkins of SierraConstellation Partners as Chief Restructuring Officer. Perkins DeclarationDkt. 33 Funded debt totaled roughly $286.1 million, dominated by a $273.1 million first-lien Prepetition Term Loan Facility administered by Wilmington Trust, with two simulator-specific Export Development Canada facilities and subordinated shareholder notes layered below it.
To pursue a Section 363 sale rather than a standalone reorganization, the debtors moved on day one for a combined DIP financing and cash-collateral package: a $14.5 million senior secured superpriority facility from the consenting prepetition term lenders ($8.0 million interim, $6.5 million on final approval) plus a $29.0 million cashless roll-up of prepetition bridge and term-loan debt, carrying priming first-priority liens and adequate protection for the prepetition secured parties. DIP and Cash Collateral MotionDkt. 12 A designee of the prepetition term lenders served as stalking-horse bidder, the sale of substantially all assets closed in May 2026, and the DIP obligations were satisfied through that closing.
With operations divested, the debtors pivoted to a liquidation plan built around a Litigation Trust to pursue and distribute remaining causes of action. The plan channels net trust proceeds on an approximate 40%/60% split between general unsecured creditors and prepetition lenders across eight classes. After solicitation on the First Amended Plan, the voting impaired classes—including the EDC secured claims and general unsecured claims—accepted, Class 5 was emptied by the SIM International settlement, and the court confirmed the plan under section 1129 over the rejection of the intercompany and equity classes. Combined Disclosure Statement and Plan MotionDkt. 302 Peter Hurwitz of Burton Hastings Advisors LLC was appointed Litigation Trustee, overseen by a board including Required Lender, Allegiant Air, and Bow Systems representatives, and the debtors indicated they intend to reach plan effectiveness before month-end June 2026.
Near-term administrative work continues behind the confirmation: an omnibus claims and administration hearing is set for July 15, 2026, the May monthly operating report remains outstanding, and interim fee applications for the Official Committee of Unsecured Creditors' professionals—Willkie Farr & Gallagher, Womble Bond Dickinson, and FTI Consulting—carry a July 13, 2026 objection deadline.
