#JetMidwest Group, LLC files for Bankruptcy Protection
03/06/18
On her The Bottom Line 11 blog, Fox partner Mette Kurth discussed the recent bankruptcy filing of aircraft service provider Jet Midwest Group:
https://delawarebankruptcy.foxrothschild.com/wp-content/uploads/sites/9/... 150w, https://delawarebankruptcy.foxrothschild.com/wp-content/uploads/sites/9/... 40w, https://delawarebankruptcy.foxrothschild.com/wp-content/uploads/sites/9/... 80w, https://delawarebankruptcy.foxrothschild.com/wp-content/uploads/sites/9/... 160w, https://delawarebankruptcy.foxrothschild.com/wp-content/uploads/sites/9/... 320w, https://delawarebankruptcy.foxrothschild.com/wp-content/uploads/sites/9/... 32w, https://delawarebankruptcy.foxrothschild.com/wp-content/uploads/sites/9/... 50w, https://delawarebankruptcy.foxrothschild.com/wp-content/uploads/sites/9/... 64w, https://delawarebankruptcy.foxrothschild.com/wp-content/uploads/sites/9/... 96w, https://delawarebankruptcy.foxrothschild.com/wp-content/uploads/sites/9/... 128w, https://delawarebankruptcy.foxrothschild.com/wp-content/uploads/sites/9/... 367w, https://delawarebankruptcy.foxrothschild.com/wp-content/uploads/sites/9/... 275w, https://delawarebankruptcy.foxrothschild.com/wp-content/uploads/sites/9/... 220w, https://delawarebankruptcy.foxrothschild.com/wp-content/uploads/sites/9/... 440w, https://delawarebankruptcy.foxrothschild.com/wp-content/uploads/sites/9/... 184w, https://delawarebankruptcy.foxrothschild.com/wp-content/uploads/sites/9/... 138w, https://delawarebankruptcy.foxrothschild.com/wp-content/uploads/sites/9/... 413w, https://delawarebankruptcy.foxrothschild.com/wp-content/uploads/sites/9/... 123w, https://delawarebankruptcy.foxrothschild.com/wp-content/uploads/sites/9/... 110w, https://delawarebankruptcy.foxrothschild.com/wp-content/uploads/sites/9/... 330w, https://delawarebankruptcy.foxrothschild.com/wp-content/uploads/sites/9/... 344w, https://delawarebankruptcy.foxrothschild.com/wp-content/uploads/sites/9/... 55w, https://delawarebankruptcy.foxrothschild.com/wp-content/uploads/sites/9/... 450w" sizes="(max-width: 300px) 100vw, 300px" />Jet Midwest Group, LLC (“Jet Midwest”) a Kansas City-based aircraft service provider, has sought chapter 11 protection in Delaware in the hope of sorting through a fleet of litigation challenges.
The first day hearing is scheduled for Monday, March 5, at 10 a.m. The committee formation meeting will take place on March 8, 2018 at 10:00 a.m. at the US Trustee’s office in Wilmington. You can download the Notice of Formation Meeting here. (The weather forecast in Delaware? Partly cloudy, 47 degrees. Dress warmly.)
Overview of the Business
Formed in 1997, Jet Midwest, Inc. (“JMI”) and Jet Midwest Technik, Inc. operate an aircraft parts and maintenance businesses out of a 2 million sq. ft. facility. They expanded that business in 2009 by forming Jet Midwest, the debtor, which sells and leases commercial aircraft and engines such as the Boeing 737, 747, 757, 767, and 777, the Airbus A320, the McDonnell Douglas MD-80, MD-82, and MD-83, and the Fokker 50 and 100. Karen Kraus (99%) and Paul Kraus (1%) own Jet Midwest.
Secured Debt Traditionally used to Purchase Aircraft
Jet Midwest used secured debt provided by private lenders such has KMW Business Jets and Alta Airlines to acquire commercial aircraft for lease or resale. In addition, in June of 2015, Jet Midwest borrowed $11 million from the F. Paul Ohadi Trust secured by a lien on all of debtor’s assets, including aircraft and engines purchased using prior loan proceeds. The current principal balance of that loan is about $6,042,565.00.
To read Mette’s full viewpoint on the filing, please visit her blog.