For years New York-based Fleet Aviation has provided chartered flights out of Westchester County Airport, transporting customers to an assortment of East Coast locations. But the skies have turned unfriendly for this local mainstay: Fleet Aviation has filed for Chapter 7 liquidation. The company’s papers in New York Southern Bankruptcy Court lists assets at under $50,000 and liabilities upwards of $500,000.
Chapter 7 bankruptcy is usually associated with individuals hoping to get rid of their unsecured debts, but businesses can select this option as well. In a way, this presents us with the converse of our previous discussion on Chapter 11, which is chiefly used by businesses but is open to private individuals. So does Chapter 7 differ significantly when it involves a business? Yes, it certainly does. While Chapter 7 liquidation allows an individual to start a new life, it basically marks the end of a business, at least in its present state. The company closes down: all assets are sold off, and unlike Chapter 11 reorganization, the business often does not remain in operation during the proceedings.
Does this mean we’ve seen the last of Fleet Aviation? It’s difficult to say, as details are still sketchy at this early stage, but it’s possible that the business will be purchased by another organization.
As a top-notch Nassau County Chapter 7 attorney, Ronald D. Weiss can help you through every stage of your liquidation. Call today for a free consultation.