November 18, 2024
Payouts are falling short of the promised 3 and 15 cents on the dollar for JetSuite SuiteKey members.
JSX may be flying high. Its sister, the former JetSuite, is operating Part 135 on-demand charter flights under the Superior Air Charter banner. But, former SuiteKey members, who had $50 million in funds at the time of its grounding, are getting a bitter pill.
The long-awaited payments were supposed to range between 3 and 15 cents on the dollar. They are coming in far short of that number for most former SuiteKey customers.
They have three old Phenom 100s and they get more ($6.5 million in CARES Act monies) than those planes are probably worth. I’d really like to hear an explanation. How many employees do they have? Where did that money go? How many people does it take to operate three small jets?
– Former SuiteKey member who is receiving 0.5 cents on the dollar
A court filing last week revealed that SuiteKey members are getting back just under one-half of a cent per dollar lost.
One former JetSuite customer wrote, “(I will receive) a pathetic $1,740 when they ‘owed’ me $349,000, which I don’t have yet and don’t know when I’ll get.”
Another called it “chump change.”
According to court filings, 56 claims from former SuiteKey members were given priority status. They are receiving a flat $3,025. In some cases, they are losing as much as 10 cents on the dollar.
The ruling noted, “If the SuiteKey claimants believed their deposits were entitled to priority treatment, they could have and should have filed a proof of claim asserting that entitlement. Rather, they choose to only assert their claims as general unsecured claims or to not file a claim at all.”
The ruling continued, “Specifically, creditors holding 95.9% in amount and 95.4% in number in Class 4 voted to accept the plan—this total includes 242 Holders of SuiteKey claims holding claims in the aggregate amount of $20,552,859.43 that affirmatively elected for treatment under Class 4 (General Unsecured Claims) rather than Class 5 (SuiteKey Claims).
“Additionally, Creditors holding 91.6% in amount and 95.8% in number, electing to remain in and voting in Class 5, voted to accept the Plan. Thus, SuiteKey claimants overwhelmingly supported a plan under which their claims were treated as general unsecured non-priority claims. Had the plan provided that all deposits were to be treated as priority claims, general unsecured creditors would have received no distribution under the plan.”
Another SuiteKey member blasted JetSuite for taking $6.5 million in CARES Act support after exiting bankruptcy.
“They have three old Phenom 100s and they get more (in CARES Act monies) than those planes are probably worth,” said one former jet cardholder. “I’d really like to hear an explanation. How many employees do they have? Where did that money go? How many people does it take to operate three small jets?”
Lawyers representing JetSuite didn’t respond to requests for comment.
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