JetDirect Aviation Officially Bankrupt

 - May 7, 2009, 12:13 PM

A petition for bankruptcy under the Chapter 7 code was filed by JetDirect Aviation with the U.S. bankruptcy court in Delaware last Friday, listing liabilities of $100 million to $500 million. The filing noted that “there will be no funds available for distribution to unsecured creditors.” A meeting of creditors is scheduled for June 18 in Wilmington, Del. JetDirect Aviation’s assets were sold April 17 to JetDirect Aviation Acquisition Company, which is now doing business as Wayfarer Aviation. The new Wayfarer Aviation hired 300 of the 700 JetDirect employees and has 33 aircraft in its charter fleet. Many of those who weren’t offered a job are still owed unpaid payroll, benefits and expense money. In an e-mail to a former employee on May 5, former JetDirect chairman Greg Campbell wrote that, after the sale, “there was no cash available to make the final payroll. The 401K contributions are subject to a class-action suit brought on behalf of the JetDirect employees that is being heard in federal court in Boston. Unpaid wages and [paid time off] are being reviewed by the Department of Labor. JetDirect filed Chapter 7 bankruptcy last Friday and your wage-related claims were listed as priority claims in the unsecured creditors class. Sorry I don’t have better news.”