Zetta Jet USA granted interim approval of post-bankruptcy financing

By Caroline Salls

Pittsburgh, Oct. 6 – Zetta Jet USA, Inc. received interim court approval for unsecured post-bankruptcy financing provided through the personal credit cards of two of its shareholders, S. Matthew Walter and James Seagrim, according to an order filed Friday with the U.S. Bankruptcy Court for the Central District of California.

The final hearing is scheduled for Oct. 25.

The company said the use of credit cards for paying immediate expenses for fuel and maintenance in a private charter jet company is part of the regular and ordinary course of business.

Because of a roughly $2 million unsecured claim owed to HSBC, Zetta Jet said its HSBC credit cards were cut off almost immediately upon the filing of the bankruptcy cases. The company’s American Express credit cards were cut off on Sept. 21.

“The debtors’ fleet and crews were stranded at airports around the world unable to pay for fuel and maintenance for their jets and hotels for their pilots to sleep,” the motion said.

As a result, Walter and Seagrim put up their personal credit cards to fund operations on an emergency basis.

Specifically, Walter provided $138,000 in funding, as of the morning of Sept. 25, and Seagrim provided $863,436 in funding. Interim approval was granted for $838,339 from Seagrim and $98,045 from Walter.

The company said it is requesting court approval of this financing “out of an abundance of caution.”

Zetta Jet is a Burbank, Calif.-based private aviation charter company. The company filed bankruptcy on Sept. 15 under Chapter 11 case number 17-21386.

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