Jetsgo to Liquidate?

Airbrake · Post by **Airbrake** » Tue Mar 15, 2005 8:59 am

"Globe and Mail
By SIMON TUCK
Tuesday, March 15, 2005

OTTAWA -- Some of Canada's largest airports may ask a bankruptcy judge in the coming days to liquidate Jetsgo Corp. in a bid to get some of the money they're owed by the airline.

About a half-dozen of the country's largest airports held a conference call yesterday to discuss the matter and concluded that there's likely no advantage in allowing Jetsgo to continue to enjoy the benefits of bankruptcy protection.

The airports, which are among Jetsgo's many creditors, believe they'll likely be better off trying to get as much money as they can right away because it's highly unlikely that the airline will ever again return to business.

"That's being actively looked at," said a senior airport official about a court petition. "They can't come back after everything that's happened."

The group of airports, which excludes Toronto's Pearson International Airport, the country's largest airport, has hired Langlois, Kronström, Desjardins of Montreal as legal representatives.

Stanley Kershman, an Ottawa bankruptcy lawyer, said creditors such as the airports stand a good chance of liquidating Jetsgo if that path is pursued. "If some of the creditors get aggressive enough, it will happen."

But Mr. Kershman said airports would have to stand in line with other unsecured creditors behind parties such as the trustees and lawyers involved in the case, employees, municipal governments owed taxes, and landlords. "People are going to get peanuts."

As part of the legal proceedings, $4-million has been set aside from Jetsgo's assets to ensure that the monitor and various lawyers representing the monitor and Jetsgo get paid. In the coming days, the monitor will send a notice to "known creditors" having a claim of at least $5,000 against Jetsgo, advising them of the court proceedings.

As well, "retention payments or bonuses" for Jetsgo management are in the cards as part of efforts to "settle the claims of customers and suppliers that are in dispute," the court filing said.

The airports, as well as air-traffic controller Nav Canada and many other creditors are owed millions of dollars.

Montreal-based Jetsgo jumped into bankruptcy protection early Friday morning, after taking passenger bookings up to an hour before shutting down the business.

Court documents filed last week in Montreal show the airline has lost $55-million since June 30, including an estimated $10-million last month. In the end, Jetsgo could not overcome the challenges of an aging fleet, aggressive expansion, heavy price discounting, and a competitor, WestJet Airlines Ltd., that it has alleged in a lawsuit had illegal access to its internal records.

The court-appointed monitor is RSM Richter Inc. and Jetsgo is being represented by Louis Gouin and Sylvain Rigaud of Montreal law firm Ogilvy Renault LLP."

Gear Up · Post by **Gear Up** » Tue Mar 15, 2005 10:43 am

Airports that Have an AIF need not worry.....they just bump up the AIF to cover for their loss. Buggers !!!!

listenheregirl · Post by **listenheregirl** » Tue Mar 15, 2005 5:26 pm

Airbrake wrote:
As well, "retention payments or bonuses" for Jetsgo management are in the cards as part of efforts to "settle the claims of customers and suppliers that are in dispute," the court filing said.

Smells too familiar to me! (like Milton).
What is with the pilfering of the companies by the CEOs that sink them?!!

shitdisturber · Post by **shitdisturber** » Tue Mar 15, 2005 6:25 pm

listenheregirl wrote:Airbrake wrote:
As well, "retention payments or bonuses" for Jetsgo management are in the cards as part of efforts to "settle the claims of customers and suppliers that are in dispute," the court filing said.

Smells too familiar to me! (like Milton).
What is with the pilfering of the companies by the CEOs that sink them?!!

It's called "big business".

sanjet · Post by **sanjet** » Tue Mar 15, 2005 6:52 pm

Why are you people bringin Milton into this?!?! I actually think he did a great job! AC is one of the few airlines in NA that actually is making an operating profit.

shitdisturber · Post by **shitdisturber** » Tue Mar 15, 2005 7:04 pm

Uncle Miltie is bringing dragged into this because he took bonuses etc worth millions while the company was fighting to survive and all the employees were taking pay cuts to keep their jobs.

sanjet · Post by **sanjet** » Tue Mar 15, 2005 11:29 pm

Well, I actually think he's doing a good job. Name a another major international carrier in North America doing better than AC (in terms of profit MARGIN).

cyyz · Post by **cyyz** » Tue Mar 15, 2005 11:37 pm

sanjet wrote:Well, I actually think he's doing a good job. Name a another major international carrier in North America doing better than AC (in terms of profit MARGIN).

Everyone... It's farking ACE... AC is dead.

flybye · Post by **flybye** » Tue Mar 15, 2005 11:40 pm

That's not quite a fair comparison, because there is no other N.A. airline that has a near monopoly on all international and about 60-70% of the domestic market in the country they serve.

Panama Jack · Post by **Panama Jack** » Wed Mar 16, 2005 4:47 am

BREAKING NEWS:

"Boxes of green happy-face pins to be sold in liquidation. E-bay offering bid falls through the floor."

sanjet · Post by **sanjet** » Wed Mar 16, 2005 11:08 am

flybye, the pax can fly on other carriers like LH, AF, CSA, BA, etc. But they still choose AC. As for domestic, we'll see in the near future.... All in all, AC are ordering aircraft and flying over 70% loads on most flights. [/b]

EI-EIO · Post by **EI-EIO** » Wed Mar 16, 2005 11:40 am

Could SG be restarted (all top management out the door) with just the F100 fleet, or has F100 prices rebounded to where it would be better to bank the capital gain from the Fokkers and liquidate?

sanjet · Post by **sanjet** » Wed Mar 16, 2005 11:45 am

In theory yes, in fact they can until April 10 as they are in bankruptcy prortection but I can gurantee you no one will fly an aircraft with the name Jetsgo on it now. No more trust. The best would be to go back on a one model fleet and rebrand yourself with a new management.

KIAS · Post by **KIAS** » Wed Mar 16, 2005 11:56 am

Check this out...

http://www.avcanada.ca/forums2/viewtopic.php?t=6378

Panama Jack · Post by **Panama Jack** » Wed Mar 16, 2005 5:55 pm

Wow! F-100's aren't worth much!!!

KIAS · Post by **KIAS** » Wed Mar 16, 2005 7:44 pm

With 175,000 hours on the airframe, they gotta be cheap... !!

bcflyer · Post by **bcflyer** » Wed Mar 16, 2005 11:01 pm

I can tell you first hand that none of Jetsgo's F-100's had anywhere near that much time on them. As well the oldest one was built in 91 not 82 as this one states. The website address doesn't work either. Definitely not one of Jetsgo's planes. Either a misprint or someone's sick idea of a joke.

Benwa · Post by **Benwa** » Thu Mar 17, 2005 5:53 am

Website is http://www.rsmrichter.com

Jetsgo's insolvency details

But I think the ad is a fake since there's no mention of it on RSM Richter's website.

Jetsgo to Liquidate?

Jetsgo to Liquidate?

BONUS- MY ASS!

Re: BONUS- MY ASS!