Zetta Jet was trying to compete against NetJets and VistaJet in offering long-haul, luxury private jet charter and jet card programs
The saga of Zetta Jet looks to be over, save for Chapter 7 bankruptcy liquidation. It comes about a week after an announcement that the luxury private jet operator had secured $8.5 million in funding and ends a bumpy two-year journey that included boardroom brawls, accusations of fraud and a September visit to Chapter 11.
The luxury private jet operator is trying to move forward and emerge from bankruptcy amid allegations of fraud and corruption
Zetta Jet earlier announced today that its existing lessor, Scout Aviation II, LLC, has committed to provide up to $8.5 million in post-petition financing. The financing, subject to Bankruptcy Court approval, will enable the operator of long-distance luxury private jets to satisfy customary obligations associated with the daily operations of its business, including the timely payment for aircraft usage, fuel, post-petition goods and services, employee wages and other obligations, according to a press release.
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.
The private jet operator says it will continue normal operations
Friday night’s bankruptcy filing by Zetta Jet USA, Inc., first reported by Private Jet Card Comparisons, comes one week after a separate lawsuit filed by the founders Advanced Aircraft Management, Inc., and Anglo American Jet Charter, Inc., the two companies that became Zetta Jet USA, Inc. after their sale to Singapore-based Zetta Jet Pte. Ltd.
There over 58 pages of creditors following the bankruptcy of luxury private jet operator Zetta Jet
On Friday, September 15, 2017, Zetta Jet USA, Inc. filed for Chapter 11 bankruptcy protection. With between $50 million and $100 million in debt, it left a list of creditors 58 pages long. The biggest creditors were Bombardier ($15.1 million) and Rolls Royce Deutschland ($4.1 million). However, FBOs, fuelers, training companies, caterers, banks and many others were owed money. From a consumer perspective, the private jet operator’s bankruptcy may bring into focus the availability of escrow accounts for jet card and prepaid block charter programs. Below is the full list of creditors per Zetta Jet’s filing in the Central District of California Bankruptcy Court.
Zetta Jet is focused on long-haul private jet charter and jet card programs for the global traveler
Zetta Jet USA, Inc., previously known as FKA Advanced Air Management, has filed a voluntary petition for Chapter 11 bankruptcy, Private Jet Card Comparisons has learned from reviewing court filings. The filing was made with the Central District of California – Los Angeles. Singapore-based Zetta Jet had been growing quickly and its website lists 11 tail numbers currently part of its fleet. In June, its Managing Director Geoffrey Cassidy told Corporate Jet Investor, the company expected to take delivery of four Global 6000s this year, along with three Challenger 650s by the end of the year. In the filing, Zetta Jet PTE Ltd. is listed as controlling 100% of equity security in Zetta Jet USA, Inc. which could also raise issues about foreign control.
Bombardier Business Aircraft opened the Bombardier Tianjin Service Centre on April 7 in China. The Montreal-based manufacturer in a press release said it “has had the largest fleet of any business aircraft manufacturer in the region for the last 12 years.” Bombardier aircraft are popular in the fleets of various private jet card and prepaid private jet charter programs, including VistaJet, Netjets, XOJET, Zetta Jet and Flexjet as examples.