Zetta Jet to implement debt restructuring

California operator Zetta Jet, along with US subsidiary Zetta Jet USA, has filed voluntary bankruptcy petitions under Chapter 11 of the US bankruptcy code to seek to restructure its debt while continuing normal business operations.

The company said the debt restructuring was brought about by its recent discovery that a former managing director had misappropriated funds and committed other fraud-ulent activities. The board of directors has since appointed Michael Maher as CEO. “By availing itself of the Chapter 11 process, the company will be able to continue its normal daily operations while the manage-ment team works to restructure its debt, making Zetta Jet financially stronger,” he explains.

“Flight operations will continue as they always have,” Maher continues. “The company has ample liquidity to meet all of its post-bankruptcy obligations and our commitment to providing our passengers with safe, reliable and luxurious air travel remains unchanged. The Chapter 11 filings will enable us to restructure the debt, providing us with the increased financial flexibility to ensure our long-term viability.”

Zetta Jet plans to file a number of motions with the bankruptcy court to request authorisation to continue certain customer programmes and to honour certain employee compensation and benefit obligations.