Appointed Sua Sponte as Receiver in Delaware Chancery Court. Then served as Responsible Party through Chapter 11 that raised cash through asset sales, avoided preferences and fraudulent transfers, and settled D&O claims resulting in approximately $5mm gross proceeds.
AirFastTickets, Inc. (Debtor) was founded in 2011 and owned and developed proprietary software to help consumers find low cost domestic and international airfares. As an airline ticketing service provider for international and domestic flights, the Debtor was required to be accredited by the International Air Transport Association (IATA). In mid-2014, the Debtor stopped making payments for its ticket sales to the airlines. IATA revoked and terminated AirFastTickets’ accreditation and license agreements due to the breach of IATA’s rules and regulations and also due to AirFastTickets owing $70 million to over 400 airlines and $38.5 million to various creditors. The termination of accreditation caused the Debtor to become insolvent and was unable to continue operations. We were brought on in April of 2015 as financial advisors with Sua Sponte, Appointment of Custodian and then Receiver, to help restructure the company and to perform forensic accounting work. In June of 2015, executives of the Debtor were informed that the founder of the Debtor had been perpetrating a fraud. The fraud consisted of taking investors loaned money, creating a fake vendor, and siphoning the money into his own pocket. In July of 2015, Petitioning Creditors filed an involuntary petition for relief under Chapter 7 and later that year the case was converted to Chapter 11. The Plan of Reorganization was successfully confirmed in 2016.