ST Engineering takes over Pemco assets

Singapore Technologies Engineering Ltd.’s US 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 B737 freighter conversion Supplemental Type Certificates (STCs).


ST Engineering takes over Pemco assets


Singapore Technologies Engineering Ltd.’s US 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 B737 freighter conversion Supplemental Type Certificates (STCs).

The deal, struck in late May and announced 8 June, has been given the go-ahead by a US Bankruptcy Court. It is anticipated to close next month, ST Engineering says. ST Engineering submitted a winning bid of US$49.7 million in a bankruptcy auction with the
deal including $6.2 million in liabilities. As part of the winning bid, Vision has agreed to pay Boeing $1.1 million in B737 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 5 March. Last month, Pemco closed down another US facility as part of its restructuring.