Parking Co. of America Airports LLC, which is one of the largest domestic off-site airport parking businesses in the United States, has filed Chapter 11 bankruptcy and plans to sell the company after sales were negatively impacted by the battered airline industry. Parking Co. of America's Chapter 11 bankruptcy filing listed the company's assets at $94 million and its debt obligations at $233 million as of September 30, 2009. Its parent company, PCAA Parent LLC has also filed Chapter 11 bankruptcy.
Parking Co. of America's "business is directly impacted by macroeconomic trends and by national and regional airline usage," PCAA Chief Executive Officer Charles Huntzinger said in court papers.
"Significant decline in travel by businesses and consumers due to the recession and reduced flights offered by airlines seeking to better manage costs," and a pullback in leisure travel, resulted in the company's "profitability sharply decreasing," Huntzinger said.
Creditors have already agreed to allow the company to sell its assets in bankruptcy and Bainbridge ZKS-Corinthian Holdings LLC agreed to purchase the airport parking business for $111.5 million. However, the agreement and sale must be approved by the bankruptcy court. If Parking Co. of America is allowed to sell its assets during bankruptcy they will eliminate an estimated $201 million in debt.
Also, the company is seeking bankruptcy court permission to obtain a $5 million debtor-in-possession loan from ING Real Estates so that it can continue its operations as it attempts to sell its assets during Chapter 11 bankruptcy. A successful Chapter 11 bankruptcy reorganization may allow the airport parking company to become viable again even if the airline industry's slump is protracted.