Ultimate Jet (UE, Akron Regional) intends to continue operating while restructuring under US Chapter 11 bankruptcy protection, President and Chief Executive Officer Stephen West has told the Cleveland Business Journal.
The private jet charter company (legal name: Ultimate JetCharters, LLC) filed for Chapter 11 in the US Bankruptcy Court for the Northern District of Ohio Eastern Division on October 10, indicating estimated liabilities of between USD10 million and USD50 million and up to 49 creditors, as opposed to estimated assets of between USD500,000 and USD1 million. Amongst its largest single debts are USD5 million owed to the Nations Consulting Group, plus USD2.1 million owed to NFS Leasing Inc. and USD1.4 million to one Charles J. Kubicki, the latter both disputed in lawsuits.
According to a company resolution filed with the court, board members have mandated West and Chief Financial Officer William Rudner to borrow funds from lenders for cash collateral to continue operations and to secure security interests on the assets against the borrowings. On October 13, US bankruptcy judge Alan M. Koschick approved priority post-petition payments to fuel companies.
West told the Cleveland Business Journal the Chapter 11 filing was necessary "to address challenges from the previous management group". This included at least USD10 million in debt for which Ultimate Jet became responsible after the airline’s founder sold a controlling interest in the company in early 2020.
The company provides on-demand charters focusing on corporate travel, incentive travel, sports team/fan travel, and casino/ resort trips with a fleet of seven Do328-300s, of which only one is in service according to the ch-aviation fleets module, as well as one EMB-135ER and one EMB-135LR, both in service.
