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MAXjet Airways files plan of liquidation
By Caroline Salls
Pittsburgh, Sept. 15 - MAXjet Airways, Inc. filed a plan of liquidation and related disclosure statement Friday with the U.S. Bankruptcy Court for the District of Delaware.
A liquidating trust will be established under the plan, and a liquidating trustee will be appointed to sell the company's remaining assets and make distributions to creditors.
As of July 31, MAXjet had $546,000 in cash and cash equivalents, and the company expects to have $5.53 million in liquidation proceeds. However, the company's total debt at July 31 was $26.5 million.
Treatment of creditors will include:
• Holders of administrative claims, priority tax claims and priority non-tax claims will receive full payment in cash;
• Holders of secured claims will receive full payment either in cash or through the return of the collateral securing the claim;
• Holders of unsecured claims will receive a share of cash from the liquidation trust; and
• Interest holders will receive no distribution under the plan.
MAXjet was an all-business-class airline based in Dulles, Va. The company filed for Chapter 11 bankruptcy on Dec. 24, 2007. Its case number is 07-11912.
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