New Chapter 11 Filing – ExpressJet Airlines LLC
On August 23, 2022, College Park, Georgia-based ExpressJet Airlines LLC, a leading regional airline connecting millions of passengers to North America monthly, filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case No. 22-10787). The company reports $10 million to $50 million in both assets and liabilities. In the First Day Declaration, the company states it failed to: (i) grow sufficiently to be able to spread overhead costs across a growing fleet and achieve competitive unit costs; (ii) generate sufficient revenues, particularly through commissions and incremental revenues from bundling hotel and air travel offerings; and (iii) maintain costs at business-plan levels. By filing for chapter 11 protection, the company seeks to market and sell its physical assets, which include valuable new and used commercial aircraft parts. The company also states that if a third-party investor wants to acquire the rights to the company’s FAA-issued operating certificate and associated intangible property, the company will pursue a potential sale of the residual entity associated with that asset.
Cole Schotz does not represent the Debtor in this case. We are posting this for informational purposes only. If you have received a notice and have any questions, you should contact Debtor’s counsel.
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