Zetta Jet files Chapter 11 bankruptcy but Still Operational
Zetta Jet Managing Director is being sued for embezzlement while the company uses Chapter 11 process to restructure debt while continuing air travel services.
Founded in August 2015 to provide commercial service with a single Bombardier Global, Singapore-based Zetta Jet Pte Ltd had since expanded to a fleet of 12 Globals and four Challengers, averaging 100 hours flight time a month. Zetta Jet had invested in additional Bombardier aircraft to bolster its existing ultra-long range fleet to capitalise on increased demand for its luxury travel services in Southeast Asia.
Slightly over 2 years later, industry publication Private Jet Card Comparisons reported that Singapore-based Zetta Jet had filed for Chapter 11 on Friday 15 September. The bankruptcy proceedings are supposedly prompted by a lawsuit filed a week earlier by lawsuit filed by the founders of Advanced Aircraft Management Inc. and Anglo American Jet Charter Inc., the two companies that became Zetta Jet USA after acquisition by the Singapore firm.
Business of Luxury: Zetta Jet files Chapter 11 bankruptcy but Still Operational
On 21 December 2016, AinOnline reported that the Singapore-based Zetta Jet had made a definitive agreement to merge with fellow Singapore private aviation company Asia Aviation Company. Zetta Jet’s pace of rapid expansion was backed by an additional acquisition of aircraft management specialist Advanced Air Management based out of Van Nuys, California.
After the merger of the aviation firms into Zetta Jet, Geoffery Cassidy remained as the firm’s Managing Director, based in Singapore. In the lawsuit filed by the former owners of Advanced Aircraft Management and Anglo American Jet Charter, the plaintiffs allege that Cassidy was “using company funds and assets for personal purchases and free transportation; taking illegal kickbacks of funds from aircraft acquisitions that rightfully belong to the company; and destroying business goodwill and reputation.” His spouse, Miranda June Tang was also named as co-defendant.
Further details of the lawsuit involving the beleaguered Zetta Jet Managing Director emerged in the filed court documents that Cassidy used company funds to “purchase and/or renovate personal property including boats and related items valued conservatively at between $3 million and $10 million, such as a Maritimo M70 cruising motoryacht called the ‘Dragon Pearl’ and a Couach cruising motoryacht called ‘Nyota’”.
Other accusations in the lawsuit alleged:
- Company funds to purchase and renovate real estate, including homes in France and Singapore
- Company funds to purchase at least three luxury automobiles in Singapore valued between $2 million and $3 million
- Extravagant gatherings costing hundreds of thousands of dollars in restaurants, bars, and social clubs in global locations including Monaco, Los Angeles, and Macao
- Use of company jets for over 300 hours of personal trips
- Illegal kickback of approximately $2 million from each aircraft purchased by Zetta Jet
The Zetta Jet Managing Director is alleged to have embezzled and misappropriated as much as $30 million.
According a statement released by Zetta Jet Pte Ltd., the company is using the Chapter 11 process to restructure debt and that Zetta Jet customers can continue to expect the same high levels of service, meticulous attention and access to the same premium, luxury aircraft which made Zetta Jet their air travel partner of choice.