Pemco Aviation (PAGI) Chairman Offers to Acquire Co. Subsidiary for $30 Million

In an amended 13D filing on Pemco Aviation Group Inc. (Nasdaq: PAGI), Chairman and 26.6% holder Michael Tennenbaum delivered to Pemco an offer to purchase all of the outstanding capital stock of Pemco World Air Services, Inc., a wholly-owned subsidiary of Pemco.

In the letter Tennenbaum said, "In order to assure that Pemco Aviation Group, Inc. is not forced into accepting a less than appropriate bid to acquire PWAS due to financing needs, I hereby agree, at your option, (1) to purchase all of the outstanding capital stock of PWAS for $30 million in cash, or (2) to provide or cause to be provided to Pemco financing on commercially reasonable terms in an amount sufficient to refinance all of Pemco’s then current debt such that no principal payments would be due until April 30, 2008"

Tennenbaum said the offer will remain open until the earlier of April 30, 2008 or the sale of PWAS to a third party.