Just a few weeks after believing that it had lined up $8.5 million in post Chapter 11 petition financing, international air charter operator Zetta Jet is ceasing operations today and turning over its air operator’s certificate to the U.S. FAA. Court documents show that the trustee in the Zetta Jet bankruptcy case, Jonathan King, a partner and co-chair of DLA Piper's white collar, corporate crime and investigations practice, has asked the court for a change from Chapter 11 proceedings to Chapter 7 proceedings. The change to liquidation came after the U.S. Court apparently denied Zetta Jet’s bid for new financing, a decision that was said to have come as a surprise.
Zetta Jet had filed for Chapter 11 bankruptcy protection in September after ousting managing director Geoffery Cassidy. Zetta Jet in mid-November announced it had arranged financing from existing lessor Scout Aviation II and said it hoped to secure a buyer for the company.
The Zetta Jet brand was launched a little more than two years ago and had become one of the fastest-growing charter operators in the Asia-Pacific region with a fleet of Bombardier Globals and Challengers. Although it was originally a Singapore-based company, the bankruptcy proceedings were filed in U.S. courts. The U.S. branch was built up following a merger less than a year ago with aircraft management specialist Advanced Air Management.