Date: Monday, March 5, 2012, 4:58pm EST
Pemco World Air Services, based in Tampa, has filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code in the Delaware federal Bankruptcy Court.
Bankruptcy protection will allow the airline maintenance company to improve its cost and capital structure. During restructuring, Pemco will continue to operate in the normal course of business without interruption, the company said in a written statement.
In January, Pemco told the Tampa Bay Business Journal that it was looking to expand its presence at Tampa International Airport . That would dovetail with the airport’s desire to further develop roughly 200 acres of property it owns near Drew Park, east of the main terminal.
Pemco relocated to Tampa from Dothan, Ala., in 2009. The company employs about 600 people.
“We value Pemco as a tenant and are hopeful this restructuring will make them a stronger company,” airport spokeswoman Janet Zink said. “We don’t have any reason to believe that they won’t continue operating here.”
Pemco has secured debtor-in-possession financing from Avion Services Holdings LLC, an affiliate of Sun Capital Partners . The financing will provide Pemco with sufficient working capital to continue to meet its ongoing obligations and payments to employees and suppliers throughout the process.
“Pemco’s operations have been impacted in recent years by a number of conditions, including a slowdown in the number and magnitude of MROs [maintenance, repair and overhaul companies], a decrease in airplane conversions in Dothan, and the overall impact of the economic downturn,” William Meehan, chief executive officer, said in a written statement. “While we have taken steps to address the challenges, we believe this process is the most effective and efficient way to restructure our business.”
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This expansion will bring as many as 500 additional jobs to the Tampa Bay area.