JDAAC Plans Payment to Current, Former Employees

 - April 2, 2009, 12:06 PM

As JetDirect Aviation Acquisition Company nears its planned purchase of assets of JetDirect Aviation, JDAAC chairman Robert Pinkas acknowledged the company’s responsibility to repay money owed to current and former JetDirect employees. AIN has received multiple complaints of bounced paychecks and non-payment of expenses and benefits from both current and former JetDirect employees. “There’s always a responsibility to pay employees,” said Pinkas. “The new company and the old company recognize that.” JDAAC’s purchase of JetDirect assets was planned to occur by April 7 but that date might “slip a little bit,” he said. Recent problems with bounced paychecks were due to a bank account “communications glitch,” according to an e-mail Pinkas sent to JetDirect employees on Tuesday. “JDAAC has provided sufficient additional cash to cover the 3/31 and 4/3 payrolls.” Previous problems with payroll and non-reimbursed expenses are due to Sovereign Bank, one of JetDirect’s secured lenders, and the severing of key relationships between the two companies after Sovereign was sold to Banco Santander of Spain, Pinkas told AIN. In the meantime, JDAAC is encouraging JetDirect management clients to sign up with the new company, in which case all money owed to those clients will be repaid. Clients owed money who don’t make the transition will have to deal with secured lenders Sovereign Bank and Contrarian Capital to seek repayment.