Avantair’s Fate To Be Determined in Coming Days
On Tuesday, Avantair asked for more time from the judge overseeing an involuntary Chapter 7 case filed against the fractional aircraft company in the U.S. Bankruptcy Court in Tampa, Fla. Avantair, which had until Tuesday to respond to the filing, argued that the “company continues to negotiate with potential sources of financing and potential plan proponents in an effort to reorganize.”
Judge Christine McEwen granted the company’s request, giving it one more week–until next Tuesday–to respond formally to the charges by the filing creditors. She also postponed a hearing originally scheduled for tomorrow until next Friday (August 16).
In the filing, Avantair said it “has aggressively pursued and continues to aggressively pursue sources of financing and negotiations with potential plan sponsors. Although the company has not yet been able to reach a deal, these negotiations continue on a daily basis. Accordingly, the company is in need of additional time.”
The fate of the company depends on whether a financing deal can be made in the next few days. Avantair “is not operating and, if it is unable to develop a viable alternative to liquidation in the next week, it will likely consent to the Chapter 7 filing,” it said, which would spell the end of the company.