JetDirect Aviation has now placed two of its subsidiary companies into bankruptcy. The first was Regal Jets of Dallas, placed into Chapter 11 bankruptcy on February 25. On Friday, JetDirect placed Novato, Calif. charter operator Sunset Aviation Inc. into Chapter 7 liquidation. JetDirect Aviation had furloughed all Sunset Aviation Inc. employees on March 2, then in a March 10 letter to those employees (although many say they did not receive this letter), JetDirect chairman Gregory Campbell explained, “As a result of this filing any wages or expense obligations owed to you will now be treated as an unsecured creditor obligation of the bankruptcy estate. All of the assets of Sunset Aviation Inc. were secured by Sovereign Bank, which will continue to possess a first lien holding. Because the bank and other secured creditors are owed substantially more than the likely proceeds of the liquidation of Sunset’s assets it is likely there will not be sufficient proceeds available for distribution to the unsecured creditors.” A JetDirect spokesman told AIN that the acquisition of JetDirect assets by Brantley Partners-backed JDA Acquisition Company (JDAAC) is still on track. Meanwhile, Dan Drohan, who sold Sunset Aviation, Inc., to Jet Direct, has formed a new company called Sunset Aviation, LLC and expects to receive a new Part 135 certificate within days. Read the full story on AINonline.
JetDirect Puts Second Subsidiary Into Bankruptcy
- March 12, 2009, 11:58 AM