Victory Park Completes Acquisition of Gulfstream International Group, Inc.
May 11, 2011
Victory Park Capital (“Victory Park”) announced today that it has completed the acquisition of substantially all of the assets of Gulfstream International Group, Inc., Gulfstream International Airlines, Inc., Gulfstream Training Academy, Inc. and Gulfstream Connection, Inc. (collectively, “Gulfstream”) in accordance with §363 of the U.S. bankruptcy code. As part of its investment, Victory Park also purchased 21 of Gulfstream’s Beechcraft 1900D aircraft from Raytheon Aircraft Credit Corporation. The acquisition follows Victory Park’s debtor-in-possession financing provided in connection with Gulfstream’s voluntary petition to commence a Chapter 11 bankruptcy proceeding on November 4, 2010.
Based in Fort Lauderdale, Florida, Gulfstream is a commercial airline operating over 125 scheduled flights per day, serving nine destinations in Florida, 10 destinations in the Bahamas, five destinations from Cleveland, Ohio and seven destinations from Billings, Montana. Gulfstream was the 15th largest regional airline in the United States (July 2010) in terms of number of passengers flown and operates under a principal code share and alliance agreement with Continental Airlines, United Airlines and Copa Airlines.
As part of its operating plan, Victory Park intends to build on Gulfstream’s commitment to safe and reliable air transportation, superior customer service and its unique orientation towards serving smaller communities. Victory Park has also recruited Darrell Richardson, a seasoned airline executive, to serve as Gulfstream’s Chief Restructuring Officer. Mr. Richardson brings over 40 years of airline experience and previously served as the Chief Executive Officer of Air Turks & Caicos and Pace Airlines, the Chief Operating Officer of Mesaba and Piedmont Hawthorne Aviation and the Senior Director of Technical Operations of Continental Express, among numerous other positions within the industry.
“Gulfstream represents an excellent opportunity for Victory Park to leverage its experience in the aviation sector,” said Matt Ray, Partner of Victory Park. “The company operates a fuel efficient aircraft fleet that serves attractive market niches with the highest commitment to safety and customer service. We are excited to work with Darrell and the team to leverage this competitive position into future growth and success.”
Victory Park provides direct financing solutions to small cap and middle market companies across a wide range of industries. It focuses on complex situations and seeks to build long term sustainable value in its companies. Victory Park is based in Chicago and has offices in Boston and San Francisco.