JetSuite Files For Chapter 11 Reorganization
The company owes between $50 million and $100 million to creditors but has far less in assets.
JetSuite’s aircraft operating arm, Superior Air Charter, recently filed for Chapter 11 reorganization in a U.S. Bankruptcy Court in Delaware. That came a week and a half after JetSuite announced it would temporarily cease operations and furlough staff due to the dropoff in charter demand stemming from the COVID-19 pandemic.
Notably, the filing does not include its aircraft holding company, JetSuite Aircraft Holdings, or scheduled air carrier JetSuiteX (now operating as JSX). JSX is still conducting city-pair regional airline flights, according to its website.
Per the bankruptcy filing, the company owes between $50 million and $100 million to hundreds of creditors but has only $1 million to $10 million in estimated assets. It owes some $9.7 million to its top 30 creditors, all but two of which are SuiteKey customers—essentially prepaid charter clients.
In a telephonic hearing held yesterday, Judge Christopher Sontchi temporarily granted a motion for Superior Air Charter, dba JetSuite, to pay taxes, insurance, and employees. A full hearing on these motions will be heard on May 22. JetSuite has not responded to multiple inquiries for comment from BJT sister publication Aviation International News.
