Dynamic International Airways creditor eyes Chapter 11 case conversion

By Caroline Salls

Pittsburgh, July 24 – Dynamic International Airways, LLC creditor PMC Aviation 2012-1 LLC asked the U.S. Bankruptcy Court for the Middle District of North Carolina to convert the company’s Chapter 11 bankruptcy case to Chapter 7, according to a motion filed Friday.

“The debtor is suffering millions of dollars of continuing losses,” PMC said in the motion. “The losses are stripping the estate of any meaningful assets to be distributed to the non-insider unsecured creditors.”

PMC said Dynamic has no reasonable likelihood of rehabilitation.

In addition, the creditor said the company may have also placed its most valuable asset, its certificates for charter services, in jeopardy by misrepresenting its financial position before the Department of Transportation and by failing to respond to demands for information from the DOT.

“Furthermore, it appears that the debtor’s current management desires to use the Chapter 11 process to benefit its financier, Kenneth Woolley, to the detriment of the non-insider, unsecured creditors,” the motion said. “The debtor has been grossly mismanaged.”

As a result, PMC said the case should be converted to allow Dynamic’s estate to be liquidated for the benefit of non-insider unsecured creditors.

Dynamic is a High Point, N.C.-based airline. The company filed bankruptcy on July 19 under Chapter 11 case number 17-10814.

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