MAXjet disclosure statement gets green light; plan confirmation hearing Dec. 17

By Jennifer Lanning Drey

Portland, Ore., Oct. 28 - MAXjet Airways, Inc. obtained court approval for the disclosure statement for its plan of liquidation from the U.S. Bankruptcy Court for the District of Delaware, according to a Tuesday filing.

The plan confirmation hearing is scheduled for Dec. 17.

As previously reported, under the plan, a liquidating trust will be established, and a liquidating trustee will be appointed to sell the company's remaining assets and make distributions to creditors.

As of July 31, MAXjet had $546,000 in cash and cash equivalents, and the company expects to have $5.53 million in liquidation proceeds. However, the company's total debt at July 31 was $26.5 million.

Treatment of creditors will include:

• Holders of administrative claims, priority tax claims and priority non-tax claims will receive full payment in cash;

• Holders of secured claims will receive full payment either in cash or through the return of the collateral securing the claim;

• Holders of unsecured claims will receive a share of cash from the liquidation trust; and

• Interest holders will receive no distribution under the plan.

MAXjet was an all-business-class airline based in Dulles, Va. The company filed for Chapter 11 bankruptcy on Dec. 24, 2007. Its case number is 07-11912.

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