Direct Air – Bankruptcy – Case Update
Today, March 23, 2012, the United States Trustee ("UST"), filed a Motion seeking conversation of the case to one under Chapter 7 or appointment of a trustee.
The UST in its motion expressed concern that Direct Air will not be able to operate and generate revenue. The airline has stopped all flights and its ability to run fly again is in question.
If the case is converted to one under chapter 7, all the assets of Direct Air will be sold and the money then used to pay its debts.
If a trustee is appointed a third party will be appointed to administer the assets of Direct Air as they attempt to reorganize.
