Business Listing $100 million in assets and $500 million in debt, Evergreen International Airlines begins liquidation process, naming creditors
Plans to continue to perpetuate Evergreen International Airlines, as CEO Del Smith said was his intent, appear to be dwindling with the filing of a Chapter 7 petition in Delaware federal bankruptcy court Dec. 31.
The move follows a summons filed under Chapter 7 of the U.S. bankruptcy code Dec. 19 by creditors requiring EIA respond within 20 days.
At the time, Smith told The Oregonian he was unaware of the filing.
I dont think 7 will work, I think well need 11, said Smith, referring to the bankruptcy codes Chapter 11, which would enable the company to be reorganized, not liquidated. Weve virtually shut the airline down.
Filing for Chapter 7 means Evergreens assets will be liquidated and distributed to its creditors.
The total assets of Evergreen companies are estimated at $100 million with total debts up to $500 million. In the filing, Evergreen said it has up to 5,000 creditors, but included a list of only 108.
With the filing, a trustee is named to administer the case and liquidate the companys assets. In an email to employees, Human Resources Director Monique Gregory announced the handling of the HR and PR department by a trustee, but the person went unnamed.
Creditors have 90 days from Dec. 31 to file their claims and be included in the distribution of assets.
According to the bankruptcy code, the case trustee will hold a meeting of creditors between 21 and 40 days after the petition is filed. The debtor, Smith, will be required to attend the meeting and answer any questions regarding his financial affairs and properties.