Avantair bankruptcy?

[AeroBoy]

I've heard from multiple sources that Avantair has filed for bankruptcy, and has shut down and laid off all employees -- if anyone can confirm, please PM me asap. Thanks.

 

[crewfoodmonkey]

And they aren't paying anyone for the time worked during their last pay period. They filed an 8-k that confirms the layoffs.

 

[crewfoodmonkey]

http://biz.yahoo.com/e/130626/aair8-k.html

 

[RoughAir]

Form 8K posted today for Avantair:
Form 8-K for AVANTAIR, INC

26-Jun-2013

Other Events


Item 8.01 Other Events.
On June 26, 2013, Avantair, Inc. (the "Company") commenced employee furloughs as the Company addresses liquidity issues and seeks alternative financing arrangements that it hopes will enable it to resume operations as quickly and efficiently as possible. In addition, on June 24, 2013 the Company received notice of service of a class action lawsuit filed by Heisman Square, L.L.C. in Oklahoma County District Court, Oklahoma.

On June 13, 2013, the Company also entered into a Forbearance Agreement with Midsouth Services, Inc. and Clear Aircraft, Inc. ("Lessor") related to past due lease payments for certain core fleet aircraft leased to the Company by the Lessor. On June 18, 2013 and June 25, 2013, the Company was notified by the Lessor that it was in breach of the terms of the Forbearance Agreement and the Lessor has been exercising and will continue to exercise all rights and remedies available under the Forbearance Agreement and applicable law, including taking possession of its leased aircraft and aircraft engines.

Read more: http://avantairowners.freeforums.ne...action=display&thread=1&page=20#ixzz2XMM7XThC
​

 

[NoJoy]

Yes grim indeed-

 

[DC8-PFE]

As an employee, I can confirm that all is true.

 

[gutshotdraw]

Sorry to hear it DC8. Truly. The second stand-down was pretty much the handwriting on the wall.

Hope all Avantair pilots and staff find new and better employment soon.

Sad.

 

[CALRepublic]

Form 8K posted today for Avantair:
Form 8-K for AVANTAIR, INC

26-Jun-2013

Other Events


Item 8.01 Other Events.
On June 26, 2013, Avantair, Inc. (the "Company") commenced employee furloughs as the Company addresses liquidity issues and seeks alternative financing arrangements that it hopes will enable it to resume operations as quickly and efficiently as possible.

this makes no sense.. are they filling for chapt 7 (liquidation) or Chpt 11 (protection from creditors)???

I'm not sure this fractional can file chapt. 11 with their financial history being what it is and no cash flow? How do you convince someone with deep pockets to back you up in court?

I don't think a judge and their creditors would go for a chapter 11 filing.. my guess is they're done

 

[justreading]

this makes no sense.. are they filling for chapt 7 (liquidation) or Chpt 11 (protection from creditors)???

I'm not sure this fractional can file chapt. 11 with their financial history being what it is and no cash flow? How do you convince someone with deep pockets to back you up in court?

I don't think a judge and their creditors would go for a chapter 11 filing.. my guess is they're done

My hope is this was somewhat pre packaged. I think they are in negotiations with Piaggio Aero (they cannot afford for Avantair to implode) talks broke down and they filed for bankruptcy. This also clears the equity, about $6 million. Let's hope for Piaggio Avanti to come in and put things back together for the pilots and staff (management can spend the next several years defending themselves against fraud allegations).

 

[hrofcr]

As someone who practiced law a LONG time ago, those of you who have been laid off, and will not receive pasy for the last weeks worked, should contact either the Federal or the FL Wage and Hour people, to see if any Fed or FL employment laws have been broken. One other wrinkle that was true 20+ years ago - if Avantair has not paid all the withheld Fed taxes (income and social security), anyone who was a signer on the payroll account can be PERSONALLY liable for the taxes withheld but not paid to the Feds.

We haven't flown with Avantair since before the October stand down - but all the staffers we ever dealt with were lovely people.

And for small, publicly-traded companies like Avantair, management doesn't get rich off their salaries; they make the really big bucks from their stock options. Guess what the stocks currently held by the board members and senior officers are worth now, versus two or three years ago? NADA!

 

[Downwind]

Best of luck to all.

 

[tdwnds1]

Sad news indeed! How many Pilots were on staff?

 

[Gators]

Latest list had 210 or so... What a bummer

 

[t-bone]

Sorry to hear it guys. Good luck!

 

[SharkRider]

Anyone got a recommendation for a good type to go get? (displaced P180 jockey). Figured I would try to take advantage of some of those programs that are available.

 

[SharkRider]

As someone who practiced law a LONG time ago, those of you who have been laid off, and will not receive pasy for the last weeks worked, should contact either the Federal or the FL Wage and Hour people, to see if any Fed or FL employment laws have been broken. One other wrinkle that was true 20+ years ago - if Avantair has not paid all the withheld Fed taxes (income and social security), anyone who was a signer on the payroll account can be PERSONALLY liable for the taxes withheld but not paid to the Feds.

We haven't flown with Avantair since before the October stand down - but all the staffers we ever dealt with were lovely people.

And for small, publicly-traded companies like Avantair, management doesn't get rich off their salaries; they make the really big bucks from their stock options. Guess what the stocks currently held by the board members and senior officers are worth now, versus two or three years ago? NADA!

odds are, the top execs have been backdooring $$$ for a while. Why else would the CEO need an offshore account?

 

[CALRepublic]

Anyone got a recommendation for a good type to go get? (displaced P180 jockey). Figured I would try to take advantage of some of those programs that are available.

The 7X, Global and G-450/550/650 are obviously the most valuable, but unless you have lots of int'l experience, you're not gonna get nowhere with the type alone

I'd look at a CL300, CL605 or Falcon 2000 type

Think about Netjets- China, tell them you'd move to China if they buy you a good type-rating.... Do that for a couple years, get some time in the airplane, some int'l experience and come back

 

[sshrae]

Those programs don't give the kind of money that would pay for a falcon or gulfstream type. You could probably get a C500 or C525 type though. In my opinion the 525 is the best type to have in that class. You can get one for 5-7k depending on school and there are a lot of those planes out there. Sam avionics as a P180 so you would have an easy transition.

 

[Gators]

I too am curious. Where is a good place to start and get the process going? C525 is a good choice in my opinion...

 

[sshrae]

Try contacting WIA, it depends on your state if they have any funding. If they do, there are offices you can visit to get the paperwork started. In california I think they were giving around 5k, that would pay for most of the type.