FINE RESTRUCTURES DEBT, SEEKS HUSHKIT FINANCING

FINE RESTRUCTURES DEBT, SEEKS HUSHKIT FINANCING    Fine Air Services Corp., the Miami-based parent company of all-cargo carriers Fine Air and Arrow Air, has come to an agreement with bond holders to restructure its long-term debt.
   Fine said the agreement, reached within a 30-day grace period afforded the airline after it failed to make a payment due June 1, puts the carrier in full compliance with the terms of its indenture.
   Fine also said it has received a commitment for $10.2 million in lease financing to purchase noise-muffling technology for four of its aircraft. Fine needs the “hushkits” to bring its planes into code under federal regulations implemented at the beginning of this year. Fine expects to close the deal by August.
   Fine’s debt agreement comes as good news to U.S. forwarders, who are facing the prospect of having less cargo capacity to choose from in U.S. domestic and international markets. Kitty Hawk Inc. is fighting to keep its domestic freighter network running after filing for bankruptcy protection. Other carriers operating older freighter planes are also reported to be in unstable financial positions.
   “We are pleased to have reached an agreement with our bondholders that allows us to be in full compliance with the terms of our senior debt,” said Barry Fine, Fine Air president and chief executive officer. “This allows us the financial flexibility to expand our scheduled cargo services to serve every major destination in Latin America and the Caribbean.”