We Are Open! Miller & Miller Law is keeping our clients and staff safe from COVID-19. We are open for free phone and video consults during these difficult times.

Our 3 Step Process

Step 1:
Get Out Of Debt

Step 2:
Clean Up Your Credit

Step 3:
Build Your Score

  1. Home
  2.  » 
  3. Chapter 7
  4.  » Evergreen Air seeks Chapter 7 protection after payment demands

Evergreen Air seeks Chapter 7 protection after payment demands

| Jan 10, 2014 | Chapter 7 |

Wisconsin residents may have heard that Evergreen International Airlines Inc. and several of its affiliates have decided to file for bankruptcy protection after it appeared as if creditors were pushing hard for the companies to make payments towards their debt. Evergreen Air filed for Chapter 7 protection on Dec. 31, 2013, only two weeks after creditors requested that the courts step in and force the company to pay off the debts it had accrued.

The creditors filed a petition back on Dec. 17 in a New York-based U.S. Bankruptcy Court. The petition only asked for Evergreen Air, an Oregon-based company, to pay off all of its debt; but after the company filed for bankruptcy, its affiliates Evergreen Defense and Services Inc. and Supertanker Services Inc. both similarly filed for Chapter 7 protection.

Evergreen Air’s response to this demand, which came in their own petition filed in a Delaware U.S. Bankruptcy Court, stated that it may have up to $100 million in remaining assets. This may seem like a large amount of money, but it is dwarfed by the possible $500 million that they owe to creditors. These assets and debts come from a company that’s provided several services, including air freight and maintenance, to government agencies, aviation companies and air carriers all across the globe.

Accruing a large amount of debt relative to assets isn’t something that only occurs on an individual-level basis. Successful companies can also face difficulties. This means that even when a person feels drowned in debt, they can use Chapter 7 protection as a life raft. A bankruptcy attorney may help with filing for bankruptcy and prevent eviction notices and even calls from creditors.

Source: Bloomberg, “Evergreen Air Files Bankruptcy After Push For Payment”, Phil Milford, January 01, 2014

Archives

Watch Attorney James Miller on the Morning Blend as he discusses his new book, The Secrets About Bankruptcy They Don't Want You To Know.

Click here to order your free copy today!
-Or-
Click here to schedule an appointment at any of our convenient locations.

Morning Blend will re-run on Labor Day.

FindLaw Network