Assets and Liabilities Held for Sale

9 Months Ended

Sep. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

Assets and Liabilities Held for Sale

4. Assets and Liabilities Held for Sale

The Company’s assets and liabilities classified as held for sale are required to be recorded at the lower of the carrying value or fair value less cost to sell.

As a result of the Sale Order approved by the Bankruptcy Court in May 2021, the Company, with the exception of one aircraft that is collateral for a sales-type lease receivable, reclassified all of its aircraft to held for sale. On the Effective date, pursuant to the Plan of Reorganization, the Company settled the liabilities subject to compromise by these assets held for sale. See Note 3 – reorganization adjustment (b). Accordingly the Company did not have assets or liabilities held for sale as of September 30, 2021.

The table below sets for the assets and liabilities that were classified as held for sale at September 30, 2021 and December 31, 2020:

	Successor		Predecessor
	September 30,		September 29,		December 31,
	2021		2021		2020
Cash and cash equivalents	$	-	$	-	$	345,900
Restricted cash		-		-		2,346,300
Aircraft and Part-out Assets		-		31,149,300		38,146,700
Notes payable and accrued interest, net		-		-		(13,836,900	)
Derivative liability		-		-		(767,900	)