Ultimate Jet Enters Chapter 11 Bankruptcy, Vows to Continue Operations

Ultimate Jet (Ultimate JetCharters, LLC), a private jet charter company based in Akron Regional, has initiated Chapter 11 bankruptcy proceedings in the US Bankruptcy Court for the Northern District of Ohio Eastern Division. Despite estimated liabilities between USD10 million and USD50 million, the company plans to continue operations during the restructuring process.

The Chapter 11 filing, made on October 10, reveals multiple creditors, with debts including USD5 million owed to the Nations Consulting Group, USD2.1 million to NFS Leasing Inc., and USD1.4 million to Charles J. Kubicki. Ultimate Jet’s President and CEO, Stephen West, emphasized that the filing is essential to address challenges from the previous management group, particularly debts amounting to at least USD10 million inherited after the founder sold a controlling interest in the company in early 2020.

To facilitate ongoing operations, Ultimate Jet’s board members have been granted authority to borrow funds from lenders as cash collateral, securing security interests on assets against the borrowings. The bankruptcy judge has approved priority post-petition payments to fuel companies, ensuring the company’s ability to continue its services.

Ultimate Jet specializes in on-demand charters, catering to corporate travel, incentive travel, sports team/fan travel, and casino/resort trips. The fleet includes seven Do328-300s, one EMB-135ER, and one EMB-135LR, with only one Do328-300 currently in service, according to the ch-aviation fleets advanced module. The Chapter 11 filing aims to address financial challenges, allowing Ultimate Jet to restructure its operations and move forward.