Corporate Air - Case Summary

Business Description

The Debtors operate as a fixed base operator (“FBO”) at the Allegheny County Airport (AGC), providing a comprehensive suite of aviation services to general and business aviation clients. Functioning as a central aviation hub for the region, the company supports both transient and locally based aircraft.

• The Debtors’ services include:
  • Aircraft management and on-demand charter operations.
  • Hangar, ramp, and tiedown space for short- and long-term aircraft storage.
  • Fueling services, supplying both JetA and 100LL avgas.
  • Full-service aircraft maintenance for scheduled and unscheduled needs.
  • Flight training conducted by experienced instructors.

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Corporate History

The business was founded in 1986 when Mark Schreiner, then a flight school operator, acquired the assets of Page AvJet to enter the aircraft management sector. The company subsequently expanded through a combination of organic growth and strategic acquisitions.

Early Growth and Strategic Acquisitions

• In its early years, the company added aircraft for clients including Allegheny General Hospital and other Pittsburgh-based corporations.
• A key milestone occurred in 1995 when Corporate Air purchased the fueling division and two hangars from Corporate Jets, establishing itself as the sole fuel provider at the Allegheny County Airport.
• In 1999, Corporate Air merged with two other charter operators, Davis Air and Tyburn Aviation, to form United Air Group, which now operates as Corporate Air, LLC.

Expansion Through Key Client Relationships

• The Debtors experienced significant expansion around 1998 through an agreement with Executive Jet Management (“EJM”), a NetJets Company, to provide supplemental lift for its charter division.
• In 1999, the company further grew its aircraft management business by acquiring the flight department assets of Westinghouse Electric, which included operating a daily shuttle service. During the same period, the Debtors secured a contract to manage CONSOL Energy's flight department.
• A long-term relationship with Dick's Sporting Goods (DSG) began in 2001. Over the course of the partnership, the Debtors managed, chartered, and provided fuel and maintenance services for 20 different DSG aircraft, which were also utilized in the Debtors' charter pool.
• The company continued its expansion with agreements with Marconi Communications and, in 2003, acquired an additional Gulfstream IV-SP through a relationship with a real estate developer in St. Maarten.

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Operations Overview

The Debtors are comprised of seven entities ultimately held by Mr. Schreiner, with the exception of Schreiner Air Investments, LLC, in which Laura Schreiner holds a 50% interest. The majority of operations are concentrated within two primary entities, Corporate Air, LLC and Steel City Aviation, Inc., d/b/a Pittsburgh Flight Training Center, Inc. (“PFTC”).

Organizational Structure

• CAM Investments, Inc.: Owns the buildings at the airport and is the lessee under the ground lease with Allegheny County for the airport operations.
• Corporate Air, LLC (“Corporate Air”): Serves as the primary operating entity, providing aircraft charter services, hangar rental, fuel services, and maintenance. It holds the FAA Part 135 certificate required for charter operations.
• PFTC: Manages the flight training operations and owns a flight simulator and related furniture.
• Special Purpose Entities:
  • Schreiner Air Investments, LLC: Owns an aircraft that it leases to Corporate Air for use in charter services.
  • Cheyenne, LLC: Owns aircraft utilized by PFTC for flight school operations.
  • Steel City Aviation, Inc.: Holds the FAA Part 141 certificate that allows PFTC to perform flight training.
  • Steel City Aviation, LLC: A non-operational entity that was formed but never utilized.

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Prepetition Obligations

As of the Petition Date, the Debtors’ significant prepetition obligations consist of secured debt, unsecured judgments, and trade payables.

Secured Debt

• Huntington National Bank (“HNB”): Approximately $2.6 million is outstanding under a $10 million term loan extended in December 2020. The obligations are secured by first-priority liens on all Debtor assets, except for the assets of Corporate Air, where the liens are junior to the SBA.
• Vantage AGC, LLC (“Vantage”): Approximately $2 million is outstanding under a prepetition bridge loan facility dated August 26, 2025. The obligations are secured by liens on all real and personal property of the Debtors.
• U.S. Small Business Administration (“SBA”): Approximately $473,000 is outstanding under a $500,000 Economic Injury Disaster Loan extended to Corporate Air in April 2020. The obligations are secured by a first-priority lien on all assets of Corporate Air.

Unsecured Debt and Litigation Claims

• Judgment Creditors: The Debtors are subject to several significant judgments, including:
  • Francois Bitz: ~$3.4 million
  • Signature Energy: ~$1.0 million
  • American Express: ~$544,000
  • 84 Lumber Company: ~$462,000
• The Debtors note that 84 Lumber has garnished a bank account at HNB as a result of its judgment.
• Trade Debt: The Debtors estimate approximately $3.6 million in trade debt owed to vendors and other parties, exclusive of the judgment-related debt.

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Events Leading to Bankruptcy

The Debtors’ financial distress stems from high customer concentration and sensitivity to downturns in their clients’ respective industries, which culminated in a severe liquidity crisis following the loss of a key customer.

Loss of Key Customer and Liquidity Spiral

• The Debtors’ business, which peaked around 2015 with approximately 20 managed aircraft, was heavily reliant on its largest clients. At its peak, Dick’s Sporting Goods (DSG) was responsible for approximately half of the Debtors’ revenue.
• In June 2023, DSG withdrew its business, including five aircraft, and hired away certain pilots and crew members. Although the parties resolved their dispute with a settlement payment of approximately $4 million to the Debtors, the loss of this business triggered a "spiral of liquidity issues."
• The departure of DSG created a compounding negative impact, reducing direct revenue from the customer while also diminishing the Debtors' ability to generate charter revenue using DSG's aircraft for other clients.
• Following the loss of the DSG business, the Debtors experienced liquidity constraints that made it difficult to service their debt. The situation was exacerbated by the loss of three additional managed aircraft contracts in 2024 and 2025, which further impacted charter, fuel, and maintenance revenues.

Failed Turnaround and Path to Chapter 11

• As liquidity tightened, the Debtors were forced to sell assets, including aircraft and a hangar. By August 2025, the company’s financial situation was "dire," preventing it from implementing process improvements or attracting new customers.
• The Debtors’ ground leases with the Allegheny County Airport Authority were at risk of termination due to various defaults, which would have had a "catastrophic effect" on the business.
• Faced with these challenges, the Debtors engaged professional advisors and entered into discussions with Vantage regarding management assistance and financing. On August 26, 2025, the parties executed a management services agreement and the Prepetition Bridge Note, which provided critical financing to avoid the termination of the ground leases.
• This process resulted in the execution of a restructuring support agreement (RSA) with Vantage, which provides for Vantage to acquire substantially all of the Debtors' assets pursuant to a chapter 11 plan.