Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Creditors Try to Force Evergreen International Airlines into Involuntary Chapter 7 Liquidation
Author: Joel R. Glucksman
Date: January 3, 2014
Key Contacts
Back
Delford Smith, founder and CEO of Evergreen International Airlines, is struggling to establish a viable financial exit plan for the ailing airline, amid new threats from creditors to push the company into involuntary Chapter 7 bankruptcy liquidation proceedings.
The unsecured creditors filed an involuntary petition against Evergreen last week under Chapter 7 of the bankruptcy law, according to OregonLive. Evergreen now has 20 days to respond. However, if evidence comes to light that the company is not paying its debts, it’s possible that the bankruptcy court may adjudicate the company a bankrupt, in which case a Chapter 7 bankruptcy trustee will be appointed to liquidate its assets.
Currently, two hotels are seeking more than $440,000 for Evergreen crew members’ lodging, and a plowing company is demanding the payment of $25,000 for clearing snow from Evergreen cargo jets at New York’s John F. Kennedy Internationa. The airline has been facing financial struggles for several months, and flew its last flight on Dec. 2, the news source explained. The distressed airline, which operated for nearly 30 years, may face additional suits from creditors who are becoming frustrated by the company’s failure to pay its debts.
In response to the threat to push the company into involuntary Chapter 7 liquidation proceedings, Smith told the newspaper that he does not wish to liquidate the company, but instead to file a Chapter 11 reorganization plan.
“I don’t think 7 will work, I think we’ll need 11,” he told OregonLive in a telephone call. “We’ve virtually shut the airline down. It’s not a big rhubarb. We’re going to perpetuate the company.”
Smith also noted that he sold Evergreen Helicopters Inc. for nearly $300 million to help reduce the airline’s outstanding debt, but that he is waiting for the cargo market to turn around before reconstituting the airline
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Local Zoning and Land Use Rules Every New Jersey Rental Property Owner Should Understand
Owning a residential rental property in New Jersey involves more than finding tenants and collecting rent. Property owners must comply with a combination of state laws, municipal ordinances, building and housing codes, and zoning and land use regulations. These requirements can affect everything from the number of dwelling units permitted at a property to whether […]
Author: Donald M. Pepe
Real Estate Litigation Explained: Top 5 Disputes and How to Avoid Them
The five most common real estate disputes are breach of contract claims, landlord-tenant conflicts, zoning and land use disagreements, construction claims, and boundary disputes. Understanding why each arises, and taking preventive steps early, can help property owners, tenants, developers, and investors avoid costly litigation. Key Takeaways: Real estate transactions are complex endeavors involving numerous parties […]
Author: Paul Grossman
When a Child Turns 18: The Gap in Your Family’s Estate Plan
Once a child turns 18, parents lose the automatic legal authority to make medical and financial decisions on their behalf, even if the child still lives at home or remains on the family’s insurance. Three documents close that gap: a durable power of attorney, a health care proxy or directive, and a HIPAA authorization. For […]
Author: George McGowan
Business Mediation: An Overview and Practical Tips
Business mediation is a confidential, voluntary process in which a neutral third party helps companies negotiate a resolution to a commercial dispute without going to trial. Because working with a mediator is very different from litigating in the courtroom, it is important to understand how commercial mediation works, when it makes sense for your dispute, […]
Author: Paul Grossman
Top 5 Causes Leading to Construction Defect Litigation
The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]
Author: Paul Grossman
How to Protect Your New Jersey Business When Going through a Divorce
The most effective ways to protect your business in a divorce are put in place before one begins: a prenuptial or postnuptial agreement, clean separation of business and personal finances, and divorce contingencies built into your operating or buy-sell agreements. If divorce is already underway, the priorities shift to establishing how the business is classified […]
Author: Jay McDaniel
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.