MAXjet plan of liquidation approved

By Jennifer Lanning Drey

Portland, Ore., March 20 - MAXjet Airways, Inc. obtained court approval for its plan of liquidation from the U.S. Bankruptcy Court for the District of Delaware, according to a Friday filing.

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

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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