Verijet, a prominent private jet operator in the United States, has filed for Chapter 7 bankruptcy, marking a significant downturn for the company. This unfortunate turn of events follows the recent death of its founder and CEO, Richard Kane, who passed away from a heart attack in September.
The bankruptcy filing was reportedly made by a receiver overseeing Verijet. According to sources, the Florida-based airline accumulated over $38.7 million in liabilities and was subsequently entangled in numerous lawsuits. The situation escalated after the passing of its CEO, Richard Kane, in September of this year.
The filing was officially submitted to the United States Bankruptcy Court for the Southern District of Florida. Chapter 7 bankruptcy proceedings typically involve the liquidation of a company’s assets to settle its debts.
Richard Kane, the visionary behind Verijet, had envisioned a private jet service centered around the Cirrus Vision Jet (SF50), aiming to serve clients across the US and Europe. The airline had also forged partnerships with notable industry players such as IBM, AON, JETPUBS, and 4AIR.
Verijet’s bankruptcy adds to a challenging year for the aviation sector, with other airlines like Scandinavian carriers Play and Braathens Aviation ceasing operations in September due to financial difficulties. Ravn Alaska, Air Belgium, and Malaysia’s SKS Airways also experienced closures earlier in the year. Even larger airlines like WizzAir and Qantas Airways had to shut down certain branches, impacting travelers globally.