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CDA waits to hear from GIAA on proposed auction of Freedom Air assets
The Commonwealth Development Authority is still waiting a response from the Guam Airport International Authority on a proposed auction of Freedom Air assets in the Guam airport hangar.
In April, the CDA board voted to foreclose on liens on any and all properties and aircraft of Freedom Air, a defunct airline that used to fly in Guam and the CNMI.
Freedom Air’s Cessna 207, Sherpa Cargo, and Piper airplanes are among the properties at the Guam airport. CDA has expressed interest in working with the Guam airport in the auction of these assets.
CDA loan manager Oscar Camacho told Saipan Tribune that they have made the determination to auction but are just waiting reply from the Guam airport authority.
He said they hope this reply would entails the “how’s” and date of the proposed auction, or if they would put it to newspapers and advertise, for example.
Camacho said a letter was sent more than a couple of weeks ago. They are still waiting reply. He said he could not disclose further details.
In April, the CDA board’s decision to foreclose came amid competing interest by the Guam International Airport Authority for the airline’s assets in its premises.
That same month, Saipan Tribune revealed that the Guam airport had found CDA’s lien to Freedom Air assets to be imperfect, because GIAA said they had not perfected their security interests in these assets.
GIAA said CDA did not file a financial statement, or UCC filing, with the Guam Revenue and Tax, and by doing so, rendered their security filings with the Federal Aviation Administration moot, because state law determines lien priorities, GIAA said.
GIAA now believes it has lien priority over CDA. These assets are estimated by CDA—if auctioned—to be enough to cover the outstanding debt plus interest Freedom Air owes CDA, or some $1.3 million.
