South Aviation, Inc. Receivership

Welcome to the website for the Temporary Receivership of South Aviation, Inc. (the "Receivership"). On this site, you will find background information regarding the Receivership, material updates regarding the status of the Receivership, and copies of certain key documents. Copies of all filings in this matter may be accessed at the Electronic Case Filing System ("PACER") for the United States District Court for the Southern District of Florida (the "District Court"), at https://pacer.login.uscourts.gov/. Please note that a PACER login and password are required to retrieve documents.

Background of this Action and Commencement of the Receivership

On March 1, 2021, CCURA Aviation Finance, LLC ("CCURA"), and CCUR Holdings, Inc. ("CCURH") filed their Original Verified Complaint (the "Complaint") in the District Court against Defendants South Aviation, Inc. ("South Aviation") and Federico Machado (collectively with South Aviation, "Defendants"), commencing the action styled CCUR Aviation Finance, LLC, et al. v. South Aviation Inc., et al., Case No. 21-cv-60462-BLOOM/VALLE, and alleging that the Defendants operated a fraudulent Ponzi scheme to provide financing for aircraft purchase agreements for South Aviation under false representations and executed under false pretenses. A copy of the Complaint may be accessed here.

Contemporaneously, CCURA and CCURH filed an Emergency Motion for Immediate Appointment of Receiver Pursuant to Fed. R. Civ. P. 66 and 28 U.S.C. § 754. ECF 4, a copy of which may be accessed here.

Subsequently, on March 12, 2021 and March 26, 2021 respectively, WBIP Aviation One, LLC and WBIP Aviation Two, LLC (together, "WBIP") and Metrocity Holdings, LLC ("Metrocity") moved to intervene. ECF 19, 24, copies of which are available here and here. The District Court granted each of the motions to intervene. ECF 38, 42, copies of which are available here and here. WBIP filed its intervenor complaint on April 6, 2021, and Metrocity filed its intevenor complaint on April 16, 2021. ECF 41, 46, copies of which are available here and here.

On April 16, 2021, the District Court entered the Order on Plaintiffs' Verified Amended Expedited Motion for Appointment of Temporary Receiver (the "Appointment Order"), appointing Barbara Martinez, Esq. as the temporary receiver (the "Temporary Receiver") over Defendant South Aviation and its respective affiliates, subsidiaries, successors, and assigns (excluding Defendant Machado individually) (collectively, the "Receivership Estates"). ECF 43, a copy of which may be accessed here. The Appointment Order directs the Temporary Receiver to, among other things, "confirm what assets South Aviation previously had and currently has; confirm what South Aviation's creditors are currently owed; freeze assets to ensure South Aviation's creditors are repaid; marshal, safeguard, and liquidate assets; ensure that preferential payments to creditors and insiders do not occur at the expense of other creditors; ensure that South Aviation's creditors are repaid in a fair and equitable manner; and file and prosecute ancillary actions to recover monies or assets for the benefit of South Aviation's creditors." Id. at 2.

By order dated October 12, 2021, the Court extended the Receivership for an additional six month period to April 16, 2022. ECF 119, a copy of which is available here.

In the initial phase of the Receivership, the Temporary Receiver focused primarily on investigating the assets of the Receivership Estates, including their location and potential value for the benefit of the Receivership Estates, and worked to preserve the value of such assets and prevent any dissipation or wrongful diversion of estate assets. Greater detail about the Temporary Receiver's efforts to date may be found in the Temporary Receiver's First 30-Day Report, the Temporary Receiver's Second Status Report and the Temporary Receiver’s Third Status Report filed on May 16, 2021, August 30, 2021 and November 19, 2021, respectively. ECF 52, 111, 142, copies of which are available herehere and here.