A press release issued by Zetta Jet claims that the U.S. Bankruptcy Court for the Central District of California is continuing with its Chapter 11 filing, appointing a trustee at its request. The move comes after two shareholders, including the former managing director Geoffrey Cassidy, received an injunction from a Singapore Court. Zetta Jet said the appointment of a Trustee would “ensure a unified direction” amidst the dispute between its shareholders. The U.S. Trustee’s Office is expected to appoint the Chapter 11 trustee shortly, according to the statement.
“We believe that having an independent and impartial trustee in place to oversee the business as well as the company’s Chapter 11 restructuring protects the interests of all of our stakeholders, and is the best course to ensure the smooth operation of our business throughout the proceedings,” said Zetta Jet President and CEO Michael Maher.
Zetta also announced that to facilitate normal business operations, it has received Court permission to pay a select group of critical vendors in the ordinary course of business for pre-petition debts owed.
“The Court’s approval of our critical vendor motion is another positive step in our efforts to restructure our debt while continuing to provide safe, reliable and luxurious service to our customers. We also appreciate the ongoing partnership of our customers and suppliers, and thank our employees for their continued dedication,” Maher concluded.
Zetta Jet said the injunction ordered by a Singapore Court to stop the Chapter 11 proceedings was null and void given that a Singapore Court has no jurisdiction in U.S. federal bankruptcy court. Zetta Jet filed its Chapter 11 bankruptcy petitions on September 15, 2017.
The bankruptcy so far includes a long list of creditors and charges of using corporate funds to buy expensive cars, yachts and homes.