Florida-based private jet charter airline VeriJet is in dire financial difficulties, just weeks after the sudden death of its CEO.
It has filed for Chapter 7 bankruptcy.
Distinct from Chapter 11 court supervised business reorganization, Chapter 7 is an official move to liquidate assets to pay off outstanding debts.
VeriJet only started operations in 2020 but expanded relatively quickly.
Founder and CEO, Richard Kane died suddenly last month of a heart attack.
The company’s model was offering access to more affordable private jet travel for up to five passengers per flight.
Verijet offered hourly flying rates from $2,500 for short flights from Orlando and then expanded to the west coast, Texas and the Northeastern US.
According to court records, the company has more than $38 million in liabilities but almost no tangible assets.
Liabilities include about $10.5 million in unused jet card deposits held by dozens of customers.
A receiver has been appointed by Judge Migna Sanchez-Llorens.
“Verijet, Inc. and Richard Kane knowingly or recklessly failed to provide complete and current information and records to which the judgment creditor was entitled,” the judge said.
