Zetta Jet has committed to continuing operations of the luxury charter for Bombardier-built business jets as it attempts to restructure the company’s debt under Chapter 11 bankruptcy protection and pursues a lawsuit against a former chief executive for allegedly misappropriating funds.
“By availing itself of the Chapter 11 process, the company will be able to continue its normal daily operations while the management team works to restructure the company’s debt, making Zetta Jet financially stronger,” says Michael Maher, the newly appointed interim chief executive.
Singapore-baseed Zetta Jet Pte and US subsidiary Zetta Jet USA each filed voluntary bankruptcy petitions under Chapter 11 in US district court in Los Angeles on 15 September, claiming liabilities in excess of $50 million, including liquidated contracts with Bombardier worth more than $15 million and unpaid bills of more than $4 million to engine supplier Rolls-Royce and World Fuel Services.
The bankruptcy petition also shows that Zetta Jet claims more than $50 million in assets, including a fleet of seven Global Express classics and five Global 6000s. Zetta Jet’s order book also includes three Global Express and two Challenger 650s due for delivery in the fourth quarter this year.
“The company has ample liquidity to meet all of its post-bankruptcy obligations and our commitment to providing our passengers with safe, reliable and luxurious air travel remains unchanged,” Maher says in a statement dated 18 September.
In a separate lawsuit filed on 8 September in US Federal Court, Zetta Jet accuses former managing director Geoffrey Cassidy of “stealing” $20-30 million from the company before he was fired in mid-August. The lawsuit alleges that Cassidy used his position to divert company funds and resources for personal gain, including the acquisition and renovation of homes, cars and yachts, and that he used company jets for personal travel.
An attempt to contact Cassidy’s office in Singapore for comment was not successful. Court records do not provide the identity or contact information for Cassidy’s attorney.
Source: Flight International
