Zetta Jet files for Chapter 11 bankruptcy
Zetta Jet announced last week that Zetta Jet Pte. Ltd and its U.S. subsidiary, Zetta Jet USA, Inc., filed voluntary bankruptcy petitions under Chapter 11 of the U.S. Bankruptcy Code to seek to restructure their debt while continuing normal business operations.
The company said that the debt restructuring was necessitated by the company's recent discovery that its former managing director, Geoffrey Cassidy, had misappropriated funds from the company and committed other fraudulent activities. As a result, the company filed a lawsuit in federal court (case number: 2:17-cv-06648) against Cassidy on Sept. 8.
Following Cassidy's termination in mid-August, the Board of Directors appointed Michael Maher as Zetta Jet's CEO. Maher is an experienced leader who held various senior leadership positions with a privately-held industrial management contractor. A veteran of the U.S. Navy, Maher also served in various roles in the U.S. Government. He was educated domestically and internationally with a background in nuclear power production and international business. He was a top athlete for The Queens College while attending Oxford University.
"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.
The company emphasized that normal business operations would continue throughout the restructuring process and beyond.
Maher concluded, "Flight operations at Zetta Jet will continue as they always have. 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. 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."
The company plans to file a number of "first-day" motions with the Bankruptcy Court to facilitate a smooth transition into Chapter 11 and minimize business disruption. Among other things, the motions request authorization to continue certain customer programs and to honour certain employee compensation and benefit obligations.
The Company filed its Chapter 11 bankruptcy petitions in the Central District of California, Los Angeles Division.
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