JetDirect Estate Seeks Chapter 7 Clawback

 - March 31, 2011, 5:50 AM

The bankruptcy trustee for debtors associated with JetDirect Aviation filed a complaint on February 20 that could force FBOs, charter operators, maintenance providers and other vendors to refund thousands of dollars for services that they provided and for which they received payment. In early 2009, when Sunset Aviation, Inc. (not LLC) and Regal Jets were owned by JetDirect Aviation, both companies filed for bankruptcy; then JetDirect filed for Chapter 7 bankruptcy on May 1, 2009. According to the trustee, during the 90-day “preferential” period before the filing of Chapter 7 bankruptcy, the three companies (the debtors) kept operating and transferring property (paying bills).

The trustee is asking the bankruptcy court to void all transactions that occurred during the preferential period. While the filing lists transfers of “not less than” $27,472, the trustee retains the right to modify the complaint with additional amounts.

One vendor told AIN that his company alone could be on the hook for six figures.

Separately, a fairness hearing was scheduled for May 16 at the U.S. District Court in Boston. The court was to consider two key issues: whether the JetDirect employee benefit plan participant class should be certified; and the fairness, reasonableness and adequacy of a settlement agreement between parties involved in the JetDirect bankruptcy, including Gregory Campbell, Robert Pinkas, Sovereign Bank, Wayfarer Aviation and others .o