Zetta Jet has announced that on September 15, 2017, Zetta Jet Pte. Ltd and its US subsidiary, Zetta Jet USA, Inc., filed voluntary bankruptcy petitions under Chapter 11 of the US Bankruptcy Code to seek to restructure their debt while continuing normal business operations, the company said.
The company said that the debt restructuring was necessitated by the company´s recent discovery that its former managing director had misappropriated funds from the company and committed other fraudulent activities. As a result, the company filed a lawsuit in federal court on September 8, 2017.
The company emphasized that normal business operations would continue throughout the restructuring process and beyond.
The company plans to file a number of “first-day” motions with the Bankruptcy Court to facilitate a smooth transition into Chapter 11 and minimize business disruption. Among other things, the motions request authorization to continue certain customer programs and to honor certain employee compensation and benefit obligations.
The company filed its Chapter 11 bankruptcy petitions in the Central District of California, Los Angeles Division.