Wisconsin business owners may be interested in hearing the announcement that the Oregon-based airline company, Evergreen International Airlines, filed for bankruptcy on the last day of 2013 with a view towards dissolution. The company’s decision to liquidate through a Chapter 7 petition in a Delaware federal bankruptcy court came about two weeks after a number of the company’s creditors had filed an involuntary petition. Evergreen’s assets are listed in the filing to be up to $100 million, with up to $500 million in debts owed to an extensive number of creditors including the company’s founder and chairman.
The company’s lawyers and officials have not responded to questions regarding the bankruptcy petition. At the time of filing, the company’s website was still in operation and carrying an earlier message from its founder insisting that the company was still planning on serving customers. However, all employees received an email from the company’s director of human resources on the date of the filing informing them of the move. Seven affiliated companies were included in the Chapter 7 filing.
The company began in 1960 as Evergreen Helicopters, and spent the following decades providing cargo and passenger services to the U.S. government. The helicopter unit was sold for $250 million in 2013, with the company stating the money was needed in paying down debts.
Unsuccessful or poorly-timed business decisions as well as a stagnating economy can cause debts to spiral out of control. For businesses that are struggling with financial obligations, filing for Chapter 7 may provide them with a fresh financial start and bring debt relief. An attorney with experience in bankruptcy law may be able to offer business owners guidance in such a decision.
Source: Oregon Live, “Evergreen International Airlines files voluntary Chapter 7 petition on New Year’s Eve“, Mike Francis, January 01, 2014
