Zetta Jet announced that its existing lessor Scout Aviation has agreed to provide $8.5 million for the recovery of the airline after it has filed for a Chapter 11 bankruptcy protection on September 15.
The post-petition financing is subject to Bankruptcy Court approval and will allow the airline to take care of its daily business activities, including paying for aircraft usage, fuel, post-petition goods and services, employee wages and other obligations.
Zetta Jet’s Chapter 11 Trustee Jonathan King confirmed that the restructuring of the company has already begun. The aim is to operate the fleet more efficiently and reduce redundant costs. With the financing the airline will be able to continue with its reorganization plan and continue providing high-quality services to its customers.
In order to receive the funds from Scout Aviation, Zetta Jet needs to establish a sale process, which will be subject to approval by the Bankruptcy Court. It shall continue with the steps required under Chapter 11 and hopes to emerge from the current state in February 2018.
The airline confirmed that it filed a motion yesterday in the U.S. Bankruptcy Court for the Central District of California, seeking interim approval in November to use up to $4.5 million of the $8.5 million financing commitment with final approval of the full amount of the financing commitment in December.