-T / T / +T | Comment(s)

Tuesday, February 5, 2008

Silver State Liquidation Stiffs Customers, Staff, Vendors

Silver State Helicopters late yesterday confirmed it is seeking liquidation under U.S. bankruptcy laws. That virtually assures that students and other customers, employees, and vendors will recover little or no money owed them. North Las Vegas-based Silver State confirmed that it closed all operations at 5:33 pm PST on Feb. 3 and has filed for protection under Chapter 7 of the federal bankruptcy code.  The company blamed “a rapid, unprecedented downturn in the U.S. credit markets” that “severely curtailed” the availability of loans for its student “and resulted in a sharp and sudden downturn in new student enrollment.” Unsecured creditors—a group that includes employees, customers, vendors, and generally shareholders—are last in line for any compensation in U.S. bankruptcy proceedings. Ahead of them is what is generally a long list of secured creditors whose transactions have tangible property—aircraft, spares stocks, and real estate, for instance—posted as collateral. Also ahead of unsecured creditors are all the lawyers involved in the case, who generally get their fees paid. For related news
[X] Dismiss Ad