Almost 46.76 million shares of AeroCentury Corp. (NYSE: ACY) traded on Monday, closing at $11.47 on the day, giving the aviation firm over 17.53 million in market capitalization. AeroCentury stock has performed well last week with a gain of 24.52%, and its price gained nearly 18.25% on 04/05/21.
The public owns 1.55M shares of ACY stock at present, with 1.20M of those shares available to trade. After the company’s bankruptcy plans were updated last week, the ACY stock has continued a strong gain.
How did the bankruptcy update go?
In particular, AeroCentury provides triple net leases for regional aircraft and engines. ACY operates around the globe leasing aircraft and engines to the aviation industry.
Last week, AeroCentury Corp. announced that it and certain of its subsidiaries started a voluntary bankruptcy case in the United States Bankruptcy Court for the District of Delaware under Chapter 11 of Title 11 of the United States Code.
- In accordance with the Bankruptcy Code and its orders, the Bankruptcy Court has granted ACY the right to continue its business operations as a debtor in possession.
- ACY will continue to manage its portfolio assets, communicate with lessees, and manage operations related to its aircraft.
- For goods and services received on or after the filing date, ACY plans to pay vendors and suppliers under customary terms, and to pay employees in accordance with usual practices.
Why did ACY file for bankruptcy?
To resolve the outstanding debt of AeroCentury (ACY) and its right to continue doing regional aircraft business as part of its mission of preserving enterprise value for its stakeholders, the Chapter 11 process by ACY represents the most effective next step.