Zetta Jet files bankruptcy in light of misappropriation allegations

By Caroline Salls

Pittsburgh, Sept. 19 – Zetta Jet Pte. Ltd. and U.S. subsidiary Zetta Jet USA, Inc., filed Chapter 11 bankruptcy Friday in the U.S. Bankruptcy Court for the Central District of California to seek to restructure their debt while continuing normal business operations, according to a news release.

Zetta Jet said the debt restructuring was necessitated by the recent discovery that former managing director Geoffrey Cassidy allegedly had misappropriated funds from the company and allegedly committed other fraudulent activities.

As a result, the company filed a lawsuit in federal court against Cassidy on Sept. 8.

Following Cassidy’s termination in mid-August, Zetta Jet said its board of directors appointed Michael Maher as chief executive officer.

“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,” Maher said in the release.

“Flight operations at Zetta Jet will continue as they always have.

“The company has ample liquidity to meet all of its post-bankruptcy obligations.

“The Chapter 11 filings will enable us to restructure the company’s debt, providing us with the increased financial flexibility to further enhance our market-leading position and ensure the long-term viability of the company.”

Zetta Jet said it plans to file a number of motions to facilitate a smooth transition into Chapter 11 and minimize business disruption, including seeking approval to continue certain customer programs and to honor employee compensation and benefit obligations.

According to court documents, Zetta Jet has $50 million to $100 million in both assets and debt.

The company’s largest unsecured creditors are:

• Bombardier (Learjet Inc.) of Coldwater, Kan., with a $15.14 million contract liquidated damages claim;

• Rolls-Royce Deutschland Ltd. & Co. KG of Derby, U.K., with a $4.19 million trade debt claim;

• World Fuel Services (Singapore) Pte. Ltd. of Singapore, with a $4.08 million trade debt claim;

• Universal Fuels, Inc. of Houston, with a $2.76 million trade debt claim;

• CAE SimuFlite, Inc. of Dallas, with a $2.26 million trade debt claim;

• Hongkong & Shanghai Banking Corp. Ltd. of Singapore, with a $2.08 million credit card services claim;

• Scout Aviation II, LLC of Guernsey, U.K., with a $1.34 million engine maintenance claim; and

• Universal Weather & Aviation Inc. of Houston, with a $1.2 million trade debt claim.

The company is represented by Levene, Neale, Bender, Yoo & Brill LLP.

Zetta Jet is a Burbank, Calif.-based private aviation charter company. The Chapter 11 case number is 17-21386.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.