| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers Z > Headlines for Zetta Jet USA, Inc. > News item |
Zetta Jet USA trustee seeks approval of $15 million ECN settlement
By Caroline Salls
Pittsburgh, Dec. 12 – Zetta Jet USA, Inc.’s Chapter 7 trustee requested court approval of a $15 million lawsuit and claim settlement reached with ECN Aviation, Inc. and ECN Capital Corp., according to a motion filed with the U.S. Bankruptcy Court for the Central District of California.
Chapter 7 trustee Jonathan D. King said in the motion that he will recover $15 million for the benefit of the Zetta Jet debtors’ estates from ECN in full settlement of a lawsuit filed by King.
In addition, King said the proposed settlement provides a full release of millions of dollars in claims as that ECN has filed or could file against the Zetta Jet estates.
Before their shutdown, King said the Zetta Jet debtors bought and/or leased three aircraft that were financed by ECN.
During the time of the ECN aircraft transactions, the trustee said Zetta Jet made more than $28 million in transfers within two years of Zetta Jet’s bankruptcy filing directly to, or for the benefit of, ECN, $8.24 million of which were made within the 90-day period before the filing.
Following an investigation, King said he asked the court to void those transfers.
Meanwhile, ECN or its affiliates filed more than $186.6 million in general unsecured claims and more than $13.1 million in administrative priority claims against Zetta Jet for debts that ECN claims the company owed under the aircraft transactions and post-bankruptcy use of the ECN aircraft.
The trustee’s lawsuit also sought disallowance of these claims.
Zetta Jet is a Burbank, Calif.-based private aviation charter company. The company filed for bankruptcy on Sept. 15, 2017 under Chapter 11 case number 17-21386.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.