In re Ayers Aviation Holdings, Inc. (00-11881)

Zlatava Davidova, Trustee of LET, a.s. ("Movant") asked the court to reconsider its August 21, 2002 Memorandum Opinion and Order regarding the validity, priority, and extent of liens or competing interests in an aircraft and its two engines. Upon reconsideration, the court found that Movant did meet its burden to prove Czech Republic law. Thus, the court applied the facts to the applicable Czech Republic law. Accordingly, the court found that the purported transfer of the L610-301 aircraft from LET, a.s. to Ayres Aviation Holdings ("Debtor") was not effective pursuant to the Czech Civil Aviation Act. However, the court found that the purported transfer of the 002 engine from LET a.s. to Debtor was valid and First National Bank of South Georgia does have a valid perfected security interest in the 002 engine. The court did not change its holding that the 998 engine belonged to General Electric. Nor did the court change its holding denying relief from the stay as to GATX Capital Corporation.

Monday, November 4, 2002