Bankruptcy judge grounds Direct Air
Wed, 11 Apr 2012 19:57:19 GMT —
Direct Air will not fly again. Bankruptcy judge Melvin Hoffman ruled Wednesday that the Myrtle Beach-based charter airline will be liquidated.
Last month, the airline's owners ceased operations and filed for a Chapter 11 bankruptcy, which would have allowed them to reorganize and begin flying again.
But the trustee appointed by the bankruptcy court requested conversion to Chapter 7, which would mean selling the company's assets to pay off their creditors.
Hoffman approved the conversion Wednesday and set a date of May 16 for creditors to meet in Worcester, Massachusetts and begin the process of filing claims.