An international airline company has been grounded at the very end of 2013, according to local business sources. Michigan residents may be familiar with Evergreen International Airlines, a company best-known for providing air transport support to other major interests around the world. The company filed for voluntary Chapter 7 bankruptcy protection as of Dec. 31.
Evergreen had been in financial deep water for some time, accruing roughly $500 million in debt against only $100 million in assets. A group of creditors filed an involuntary bankruptcy petition in mid-December in an effort to force the company into paying these outstanding debts. This followed an early November missive from the company's founder ensuring customers that Evergreen would continue to service their needs for the foreseeable future.
A number of subsidiaries filed for Chapter 7 at the same time as the parent company, including Evergreen Systems Logistics and Evergreen Trade. The Chapter 7 was not a decision made lightly by company executives -- they had already sold off a number of other interests in an attempt to satisfy existing debt. However, the company will liquidate its remaining assets to pay off creditors, saving shareholders and owners from financial strife.
While Michigan business owners will agree that a Chapter 7 filing is a significant decision for an entrepreneur to make, it is sometimes the most responsible choice at the same time. Filing for bankruptcy of this type means that while the company's assets are liquidated, personal assets likely remain unscathed. This gives owners the opportunity to start fresh and, more importantly, debt-free as they move forward toward new investment opportunities.
Source: oregonlive.com, Evergreen International Airlines files voluntary Chapter 7 petition on New Year's Eve, Mike Francis, Jan. 1, 2014