JetSuite refutes customers who allege a Ponzi scheme

JetSuite bankruptcy filings

A pair of JetSuite SuiteKey jet card members contend wrongful conduct and breach of fiduciary duties

“JetSuite will fly again,” says its chief restructuring officer, debating the Trustee’s allegation that the private jet operator’s bankruptcy is a liquidation and not a restructuring

Just when it looked like JetSuite’s Chapter 11 bankruptcy filing was about to move quickly through the courts, it may have hit a pair of speed bumps.

Trustee objects to JetSuite’s bankruptcy reorganization plan

JetSuite

JetSuite’s Chapter 11 reorganization plan is “not feasible,” according to the trustee

The trustee overseeing JetSuite’s Chapter 11 bankruptcy is urging the judge to reject the company’s proposed plan. The filing today came hours before the deadline for objections and ahead of a scheduled Sept. 3rd court date.

JetSuite burned through at least $100 million in cash before filing for Chapter 11

JetSuite bankruptcy

In addition to over $50 million in jet card deposits, grounded private jet charter operator JetSuite received over $57 million from affiliates since 2016

Flight delays caused by President Trump, stolen silverware, broken coffee makers and ‘race to the bottom’ pricing’ increased the losses

Is a JetSuite 2.0 in the works?

Court documents from the bankruptcy proceedings of Superior Air Charter, LLC, better known as JetSuite, show a company that was burning through cash since at least 2016.

During that time both JetBlue Airways and Qatar Airways made investments into the parent company JetSuiteX, Inc. Additionally, JetSuite used $50 million in unredeemed deposits from jet card customers towards operations, something its contracts permitted. The company, like other key players in the market, did not offer an escrow account.

JetSuite files for Chapter 11 bankruptcy with up to $100 million in liabilities

JetSuite

Since grounding its fleet earlier this month, the company had not communicated with SuiteKey jet card customers except to advise them of the shutdown

The company says it hopes to resume operations without disclosing specifics

JetSuite, dba as Superior Air Charter, filed for Chapter 11 bankruptcy protection in Delaware today. The move came two weeks after it suspended operations and furloughed most of its employees.

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