Eos Airlines Files for Chapter 11
Saturday April 26, 9:58 pm ET Planned Investment does not Close; Premium Class New York-London Carrier Forced to Wind Down Operations
PURCHASE, N.Y.--(BUSINESS WIRE)--Eos Airlines, the premium class New York to London carrier, which has become known for its operational excellence and uncrowded Guest experience, announced today that it has filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code. The petition was filed April 26, 2008 in the U.S. Bankruptcy Court in the Southern District of New York.
On April 26, 2008, Eos plans to operate Flight 6 (8:30pm) from JFK to STN. On April 27, 2008, Eos plans to operate Flights 3 (1:00pm) and 7 (6:30pm) from STN to JFK. Flight 5 from STN to JFK and all flights from JFK to STN on April 27, 2008 are canceled. Eos will immediately implement a reduction in its workforce, eliminating the positions of most of its employees, and will cease operations entirely after April 27, 2008.
Jack Williams, Eos’ CEO, said: “After overcoming today’s extremely challenging economic and credit environment to negotiate terms for a round of financing, it is regrettable that we were forced to take this action. We had been clear since closing on our last round of financing that we would need additional capital. As difficult as it is to raise funds in the current environment, investors believe in our business model and we were on the verge of success.
“Unfortunately, just as we were working toward closing on an investment that would have carried us to corporate profitability in 2009, some issues arose that we could not overcome. It is regrettable that, even though investors continue to be enthusiastic about our business model, and even though we had a term sheet in hand, we were unable to close on the financing we needed. That leaves us with insufficient cash on hand to continue operations.
“There are times in business when even though you execute your business plan and even though your employees do their jobs beautifully, external forces prevent you from controlling your own destiny. “I want to express my appreciation to our dedicated employees and to the many Guests who have become like family to us.”

 

Wow, another one down. This is flat out scary. God Bless and Good Luck to all of the EOS family.

 

I met a couple of guys from EOS. Class individuals. I feel terrible for all you guys. Do any of you know what will happen to Mr. Muhammed's contract? I loved flying with those flight attendants when I was with Primaris. I hope that company will accomodate 757 guys in the future.

 

That is terrible news, I wish you all the luck and hope you will find a job very soon.

 

Good luck to all the EOS folks. This is a dark time for all of us in the industry, especially for those at less-entrenched companies or those of us who are junior at the legacies....


I assume those "issues" were fuel? Can anyone confirm?

 

The main issue was ownership. The new investment would have dropped the company below the 51% US owned threshold and we just can't have that. If ever there was a case of the govt sticking it to the little guy, this was it.

 

Yeah, let's just let "that" camel into the tent.

 

The loss of EOS is a very sad one to me. I interviewed there back in Feb 07 and was VERY IMPRESSED with the people I met and the vision that they had for their company. Truly a unique and successful product centered on making the customer No 1. What a concept in this Greyhound type industry.

 

This was a shock to me as well. I had a June class date and was looking foward to working with folks. Very professionally run outfit that valued its employees! Best wishes to you all.

 

Eos Airlines Files Motion to Schedule Auction and Sell Company and Its Assets
Friday May 16, 11:44 am ET

PURCHASE, N.Y.--(BUSINESS WIRE)--Eos Airlines has filed a motion asking the U.S. Bankruptcy Court for the Southern District of New York to approve a process and schedule for the auction and sale of the company and its assets.

Eos, the premium class New York to London carrier known for its operational excellence and uncrowded guest experience, filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code on April 26, 2008.

Through the auction and sale process, Eos hopes to sell either its business to a party interested in restarting Eos as a going concern or all of Eos’ most valuable assets to one or more purchasers. Eos has separately sought Court authority to sell all assets valued at less than $225,000 on an expedited basis.

Eos has asked the Court to approve bidding procedures and schedule an auction to approve a successful bid. If approved by the Court at a hearing scheduled for May 22, 2008, the deadline for submission of bids for any of the assets of Eos shall be May 30, 2008, with an auction to take place on June 9, 2008. The full motion, containing details of the procedures and the schedule leading up to the auction can be found at www.kccllc.net/eosairlines.

Bidding procedures can also be obtained by contacting Robert Hershan of Alvarez & Marsal at [email protected]. Eos is seeking Court approval to retain Alvarez & Marsal as its financial advisor. Menzies Corporate Restructuring is acting as joint administrators in the United Kingdom and Squire Sanders & Dempsey LLP is serving as bankruptcy counsel.

All court filings and other information can be found at www.eosairlines.com and at www.kccllc.net/eosairlines.

http://biz.yahoo.com/bw/080516/20080516005601.html?.v=1