Kellstrom Industries

Division: Phoenix Capital Resources, Phoenix Management Services


Kellstrom Industries was a $350 million publicly traded distributor of airplane parts based in Florida.


Kellstrom Industries was suffering from a downturn in the commercial airline industry and high leverage from numerous acquisitions. The Company’s lender required Kellstrom to engage a restructuring advisor to assist in the recapitalization of the business. The complexion of the Company’s problems dramatically changed after September 11, 2001.


Phoenix assumed responsibility as the restructuring advisor and executed a pre-arranged Chapter 11 with a 363 sale. The post-petition auction process resulted in a 10% increase in the initial stalking horse bid. This resulted in recovery to the company’s various creditors that exceeded initial liquidation analysis.