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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): November 7, 2007
Global Aircraft Solutions, Inc.
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(Exact Name of Registrant as Specified in Charter)
Nevada 000-28575 84-1108499
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(State of (Commission File (IRS Employer
Incorporation) Number) Identification No.)
P.O. Box 23009 Tucson, AZ 85734
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(Address of principal executive offices)
(520) 294-3481
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(Registrant's telephone number, including area code)
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(Former Name or Former Address if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
|_| Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b)).
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-14(c).
ITEM 1.01. Entry into a Material Definitive Agreement.
The information reported in Item 2.03 of this Current Report on Form 8-K is
incorporated herein by reference.
ITEM 2.03. Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
On November 1, 2007, Global Aircraft Solutions, Inc ("Global"), Hamilton
Aerospace Technologies, Inc. ("HAT"), a wholly owned subsidiary of Global
Aircraft Solutions, Inc. and World Jet Corporation, ("WJ") a wholly owned
subsidiary of Global Aircraft Solutions, Inc. (collectively the "Company")
closed on a ninety (90) day extension of line of credit under Global's existing
credit facility ("Credit Facility") with its senior lender ("Extension"). The
existing credit facility which consists of (i) a $5 million line of credit
("Line of Credit") (ii) a Guidance Line of Credit in the amount of $7 million
("Guidance Credit") solely for the acquisition of aircraft and (iii) Letter of
Credit Facilities in combined amounts not to exceed $200,000.00 ("Letter of
Credit Facilities") were scheduled to naturally expire on October 31, 2007. The
Company and it's senior lender reached an agreement to extend the Line of Credit
and Letter of Credit Facilities for ninety (90) days beginning November 1, 2007
through January 31, 2008 ("Extension Period"), however, the Guidance Credit
(which was never utilized) has expired. The Line of Credit was modified from $5
million to $4,872,000.00 less any amounts of all Letter of Credit Facilities
outstanding or which the Company's senior lender is obligated to provide. As of
the current date, there are no outstanding Letters of Credit or obligations to
provide the same which will impact the availability of the Line of Credit. The
interest rate on the Line of Credit during the Extension Period was increased
from 3% per annum to 5% per annum in excess of the applicable LIBOR rate. The
Line of Credit remains secured by a first priority lien on all of Global's,
HAT's and WJ's personal property. The term of the Extension Period shall expire
on January 31, 2008 and the entire outstanding principal balance, all accrued
and unpaid interest, and all other sums due and payable under the Line of Credit
shall be due on the January 31, 2008 expiration date.
In addition to the Extension of the Line of Credit and Letter of Credit
Facilities, the senior lender has agreed to waive any and all existing defaults
which may have occurred under the Credit Facility with respect to the ratios
through September 30, 2007 and margin defaults through October 31, 2007;
provided any amounts drawn under the Line of Credit do not exceed the borrowing
base by $1.5 million through October 31, 2007.
The Borrowers paid total fees and expenses of approximately $50,000.00 in
connection with the Extension of the Line of Credit and Letter of Credit
Facility.
The material terms of the loan/credit facility are qualified in their entirety
by the terms of the Loan Agreement, Promissory Note, Security Agreement, and
Guaranty filed as Exhibits 99.1 through 99.4 of the Form 8-K filed on February
8, 2005. The material terms of the loan are qualified in their entirety by the
terms of the Loan Agreement and Promissory Note filed as Exhibits 99.1 and 99.2
of the Form 8-K filed on July 14, 2005. The material terms of the first
modification to the loan are qualified in their entirety by the terms of the
First Modification to Loan Agreement filed as Exhibit 99.2 of Form 8-K filed
December 14, 2005. The material terms of the first modification to the loan are
qualified in their entirety by the terms of the First Modification to Loan
Agreement filed as Exhibit 99.2 of Form 8-K/A filed January 30, 2006.The
material terms of the Extension are qualified in their entirety by the terms of
the Extension and the attached Exhibit 10.1 filed herewith.
ITEM 9.01 Financial Statements and Exhibits.
(c) Exhibits
Exhibit No. Document
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10.1 Form of Extension of Loan Agreement among Global Aircraft
Solutions, Inc., Hamilton Aerospace Technologies, Inc., and
World Jet Corporation as Borrowers, and senior lender of
Company.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: November 7, 2007 Global Aircraft Solutions, Inc.
(Registrant)
By: /s/ John Sawyer
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Name: John Sawyer
Title: President