Direct Air Files Chapter 11
Direct Air, which suspended its flights earlier this week, effectively halting all commercial passenger traffic at Worcester Regional Airport, has filed for Chapter 11 bankruptcy protection.
The air carrier, filing under its corporate name, Southern Sky Air & Tours LLC, filed documents yesterday at U.S. Bankruptcy Court in Worcester, saying it has 100 to 200 creditors, estimated assets of $500,000 to $1 million and estimated liabilities of $10 million to $50 million.
According to its filing with the court, the company must submit a list of its 20 largest unsecured creditors and a financial statement by March 30.
The company is being represented by the Boston law firm of Riemer & Braunstein.
Earlier this week, Direct Air said it was suspending all flights until May 15. It had been operating flights between Worcester and Florida, as well as the carrier's hub in Myrtle Beach, S.C.
In a statement on its website, Direct Air is advising passengers with Direct Air tickets to contact their credit card company for refunds. Those who paid by cash or debit card are being instructed to call 1-855-888-8090 or see the detailed instructions for filing a claim with the escrow bank and securer contained in a notice from the U.S. Department of Transportation. Click here to view that notice or visit http://www.visitdirectair.com/pdf/dot.pdf
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