JetSuite Files For Chapter 11 Reorganization

 - April 30, 2020, 12:58 PM

JetSuite’s aircraft operating arm, Superior Air Charter, on Tuesday filed for Chapter 11 reorganization in a U.S. Bankruptcy Court in Delaware. That came a week and a half after JetSuite announced it would temporarily cease operations and furlough staff due to the dropoff in charter demand stemming from the Covid-19 pandemic.

Notably, the filing does not include its aircraft holding company, JetSuite Aircraft Holdings, or scheduled air carrier JetSuiteX (now operating as JSX). JSX is still conducting city-pair regional airline flights, according to its website.

Per the bankruptcy filing, the company owes between $50 million and $100 million to hundreds of creditors but has only between $1 million and $10 million in estimated assets. It owes some $9.7 million to its top 30 creditors, all but two of which are SuiteKey customers—essentially prepaid charter clients.

The top creditor is Netflix, a SuiteKey customer that is owed about $931,000. Jet Support Services Inc. and Textron Aviation—owed about $658,000 and $260,000, respectively—are the only non-charter account customers on the list.

In a telephonic hearing held yesterday, Judge Christopher Sontchi temporarily granted a motion for Superior Air Charter, dba JetSuite, to pay taxes, insurance, and employees. A full hearing on these motions will be heard on May 22. JetSuite has not responded to AIN's multiple inquiries for comment.