Dornier Aviation (North America) Bankruptcy Trustee H. Jason Gold to Issue First Dividend to Creditors
Payment of 17 cents on the dollar expected to be first of several distributions; multi-million dollar lawsuit against Hainan Airlines to commence this month
Washington, DC-Wiley Rein & Fielding partner H. Jason Gold, the court authorized trustee for the bankruptcy estate of Dornier Aviation North America (DANA), announced today that he is paying $3 million to general unsecured creditors in the first of what is expected to be several distributions. In a separate matter, the trial of the trustee's lawsuit against Hainan Airlines, seeking the recovery of over $2.9 million in unpaid invoices and other charges for spare parts, is scheduled to begin on August 21, 2006.
"I'm pleased that we are in a position to make a 'down payment' of $3 million to creditors who have had to wait several years," said Gold. "Although we have previously paid all of the employee priority claims and secured creditors in full, totaling over $2 million, the $3 million we are paying now to unsecured creditors represents over 17 cents on the dollar. Moreover, we fully expect to be in a position to eventually pay significantly more," he added.
The lawsuit against the China based Hainan Airlines is being conducted in the United States Bankruptcy Court for the Eastern District of Virginia in Alexandria, the court where the DANA bankruptcy was filed. "The assets of DANA included unpaid amounts from various companies, foreign and domestic that DANA did business with. In some cases it is necessary to bring suits to recover these sums and Hainan Airlines is the largest remaining unpaid account in this case," Gold said.
Gold is head of WRF's Bankruptcy and Financial Restructuring Practice. The firm serves as Gold's counsel in the DANA/Hainan Airlines litigation.
