Singapore Technologies Engineering Ltd.’s U.S. division Vision Technologies Aerospace Incorporated has received bankruptcy court approval to proceed with its purchase of parts of Pemco World Air Services assets, including the company’s Tampa, Fla., maintenance business and its freighter conversion Supplemental Type Certificates (STCs).
The deal, struck in late May and announced June 8, was blessed late last week by the U.S. Bankruptcy Court in the District of Delaware. It is anticipated to close next month, ST Engineering says.
ST Engineering submitted a winning bid of $49.7 million in a bankruptcy auction. The deal includes $6.2 million in liabilities. As part of the winning bid, Vision has agreed to pay$1.1 million in 737 STC-related data license fees owed by Pemco, according to a court filing.
In addition to the STCs, the purchase nets Vision 320,000 square feet of hangar and office space at Tampa International Airport. The former Pemco assets will be held under a newly incorporated entity, wholly owned by Vision.
Pemco, citing “a slowdown in the number and magnitude of MROs,” a dip in conversion work and fallout from the economic downturn, filed for Chapter 11 protection on March 5. Last month, Pemco closed its Dothan, Ala., facility as part of its restructuring.