Private aviation firm Zetta Jet Pte. Ltd. and its U.S. subsidiary have filed for Chapter 11 bankruptcy to restructure its debt after discovering a former executive had allegedly misappropriated funds.
Zetta Jet, headquartered in Singapore, has its charter sales and operations center at the Hollywood Burbank Airport in Burbank.
The debt restructuring was necessary after the company discovered early this month that former managing director Geoffrey Cassidy had allegedly misappropriated funds and committed other fraudulent activities. Zetta filed a lawsuit against Cassidy in U.S. District Court for the Central District of California on Sept. 8, according to a company press release.
Chief Executive Michael Maher said Zetta will continue to provide its air charter services.
“The company has ample liquidity to meet all of its post-bankruptcy obligations and our commitment to providing our passengers with safe, reliable and luxurious air travel remains unchanged,” Maher said in a prepared statement.
Cassidy through his companies Asia Aviation Holdings and Truly Great Global is a majority shareholder in Zetta Jet. In a prepared statement, he said that Maher filed the bankruptcy case without approval of himself or other investors and that they were taking legal action in Singapore in relation to the bankruptcy filing.