US private equity firm LMK Global Resources Inc (OTCQB: ALAS) said that on June 22 it entered into a share exchange agreement with Arnold Leonora and Air Transport Group Private Equity Inc for full financial ownership rights and control of Madrid, Spain based cargo carrier Corporacion Ygnus Air SA.
Under the deal, the name of the carrier will be changed to Alas Aviation Corp and application will be made to change its common stock ticker symbol from VERL to ALAS.
Cygnus operates two Boeing (NYSE: BA) 757-200 cargo jets under “Wet Lease” Aircraft Crew Maintenance Insurance contracts with Iberia Airlines and TNT Express out of Madrid, Spain and Liege, Belgium, with 2012 Deloitte & Touche Audited revenues of 19.55m Eurosor USD 25.4m.
Under the agreement the 40 plus employee Cygnus, founded in 1994, becomes LMK/ALAS´ first aviation operating company subsidiary.
The transaction has closed into escrow pending ATG´s delivery of a PCAOB certified financial audit which meets US accounting standards, and is expected to be completed by mid September, and the successful refinancing of old Cygnus debt guaranteed by former shareholders by October 31, 2013.
Alas Aviation is a niche operator of air cargo and related ground service operators through its sole operating subsidiary Corporacion Ygnus Air.
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