Gemini finalizes new financing
Gemini Air Cargo said Thursday it successfully renegotiated debt and payment terms with its bank lenders, aircraft lessors, maintenance provider and equity holders as part of its broader plan to restructure the company.
Terms of the restructuring include forgiveness of bank term debt, adjustment of aircraft lease and maintenance rates to reflect weakened market demand, the return of certain leased aircraft and the infusion of cash by the company’s majority stockholder, buyout specialist The Carlyle Group.
Recapitalization will allow the company to remain in business without seeking bankruptcy protection, President Thomas Corcoran told American Shipper. The Dulles, Va.-based company uses a fleet of 15 owned and leased aircraft to supply airfreight services to airlines, freight forwarders and the U.S. military. The company returned two of its 12 DC-10s to its leasing company to reduce cost and capacity on under utilized routes, Corcoran said. As business picks up the company plans to add more modern MD-11 aircraft, he said. The company currently leases four MD-11s.
“We are excited about the . . . future of Gemini in the worldwide cargo marketplace,” said Greg Ledford, transportation managing director for Carlyle Group, in a statement. “We will continue to support the company as it carries out its strategic plan.”