Evergreen International Aviation, Inc.

Evergreen International Aviation, Inc.

Evergreen International Aviation, Inc., and its affiliated debtor entities (Evergreen) were global aviation service companies based in McMinnville, OR. Founded in 1960, Evergreen was primarily known for commercial helicopter operations and agricultural and forestry applications. Evergreen filed for protection under Chapter 7 of the US Bankruptcy code on December 31, 2013. At or around the date of filing, assets for all jointly administered estates were estimated at more than $400 million.

Despite the significant amount of assets scheduled at or around the time of filing, many of these assets are uncollectible;


Out of the seven jointly administered estates, estimated assets at or around the time of filing include $267,121,949.25 in intercompany accounts receivable, due from the other debtor entities. In addition to this, accounts receivable from non-debtor entities total $55,414,689.45, whose balances are not collectible since those entities are having financial difficulties or are in bankruptcy in Oregon.


There are significant security deposits listed on the bankruptcy schedules of Evergreen. However, approximately $15 million of these security deposits are on aircraft which have been foreclosed upon and repossessed. These security deposits are not collectible.


The Trustee was able to sell the machinery, equipment, aircraft, inventory and other miscellaneous assets, primarily through one asset purchase agreement with Jet Midwest Group, LLC. To date the estate has recovered $4,838,505.93 from the sale of these assets.


At the time of their filing, Evergreen had ownership interest in five buildings in McMinnville, OR. As of June 30, 2017, the Trustee was able to liquidate all the real estate assets of the company, except for the real estate located at 3800 Three Mile Lane, McMinnville, Oregon. These properties have generated $7,600,000 for the estate.

Regarding 3800 Three Mile Lane, only the building is owned by the Debtors. The land is owned by a non-debtor holding company. The Trustee is in negotiations with the first mortgage holder and World Fuel, a judgment holder, in an attempt to resolve the title issues related to the building and a fraudulent conveyance alleged by the Trustee.


The Trustee has been able to secure additional funds for the estate. The Trustee has been able to secure $1,457,106.39 in funds turned over from various financial institutions. The Trustee is also in the process of collecting accounts receivable (A/R), various security deposits and miscellaneous refunds. To date, the Trustee has collected $2,407,384.12 in accounts receivable, and secured refunds of $215,915.53. The Trustee has also been able to generate $219,869.79 for the estate, largely through rental income through use of the real estate.

The Trustee also pursued two pieces of litigation, resulting in collective settlements of $1,609,335.72.


The Trustee filed 12 avoidance actions for preferential transfers received within 90 days preceding the filing. These matters are have all been resolved, resulting in collections of $117,199.99.

The Trustee has also filed several adversaries to recover fraudulent conveyances that were made to related parties. To date, all matters have been resolved, with the exception of one matter with World Fuel. This matter will be resolved in connection with the sale of the remaining real estate, in which World Fuel has a judgment.


Through June 30, 2017, the Trustee has recovered 18,465,317.47 collectively for the debtors. As of June 30, 2017, cash held by the Trustee is $1,512,748.52.


There are currently no outstanding professional fee orders outstanding.