With millions in debt, international airline files for bankruptcy
It is a proud American tradition to start a business. You start small and hopefully can build your business into a large brand that generates income for you and your employees. You might even have issued stock and have shareholders. Starting a business, however, is no easy feat. It takes a lot of money to get a business going, and not all ventures make it up in the end. At this point, a company might consider filing for Chapter 7 bankruptcy.
That’s the situation Evergreen International Airlines finds itself in currently. The airline was deep in debt, according to the federal bankruptcy court filing. The company had debts maxing at $500 million and assets of no more than $100 million. The overwhelming debt was owed to approximately 5,000 creditors, detailed in the list of names more than 100 pages long.
It’s a sad situation for a business that began in 1960, with services provided to the U.S. government, among others. The company recently sold its helicopter business in order to put money toward debts.
The Chapter 7 filing does not provide any details on the non-profits that are associated with the company, including an aviation and space museum and a water park. One problem that will continue for the organization is an investigation by the government into allegations of improper management of funds.
It is difficult to admit that you need help. But sometimes starting over from scratch is the best option available. Chapter 7 bankruptcy may be an option that best helps a person or company, including those in Georgia, emerge from a difficult financial position to a place where they can start over with a clean slate.
Source: The Oregonian, “Evergreen International Airlines file for voluntary Chapter 7 petition on New Year’s Eve,” Mike Francis, Jan. 3, 2014