A U.S. Bankruptcy Court has approved Zetta Jet’s request to appoint a Chapter 11 trustee during bankruptcy proceedings. 

The U.S. Trustee’s Office is expected to appoint a trustee shortly. Zetta Jet also received court approval to pay a select group of critical vendors in the ordinary course of business. 

Zetta Jet filed for Chapter 11 bankruptcy on Sept. 15 to restructure the company amid continued shareholder disputes. Zetta Jet continues to operate and honor bookings, the company stresses. An independent, impartial trustee to oversee the business and the Chapter 11 restructuring is in the best interests of its stakeholders and will ensure smooth operation of its business during the proceedings, said Michael Maher, Zetta Jet president and CEO. 

The company filed for Chapter 11 protection following a separate lawsuit filed that alleges that former managing director Geoffrey Cassidy misappropriated company funds and committed other fraudulent acts. An emergency injunction ordered by a Singapore court to stop bankruptcy proceedings by Cassidy was found null and void, given that the Singapore court has no jurisdiction in U.S. federal bankruptcy court, Zetta Jet said.