Evergreen Air Files Bankruptcy After Creditors Seek Payment

Jan 01, 2014 1:43 pm ET

(Updates with earlier filing in second paragraph.)

Jan. 1 (Bloomberg) -- Evergreen International Airlines Inc., a provider of air freight and transport services, sought bankruptcy protection yesterday two weeks after creditors asked a court to force the company to pay off debt.

The petition filed in U.S. Bankruptcy Court in Wilmington, Delaware, cited as much as $100 million in assets and as much as $500 million in debt.

Some creditors filed papers Dec. 17 in U.S. Bankruptcy Court in Brooklyn, New York, seeking to force McMinnville, Oregon-based Evergreen to pay its bills, according to the Delaware petition. Also seeking Chapter 7 protection were affiliates including Supertanker Services Inc. and Evergreen Defense and Security Services Inc.

Evergreen provides air freight, maintenance and other services to air carriers, aviation companies, and governmental agencies worldwide using a fleet of Boeing 747s.

Last March, Erickson Air-Crane Inc. said it would buy Evergreen Helicopters Inc., with 64 aircraft, for $250 million.

The case is In re Evergreen International Airlines Inc., 13-bk-13363, U.S. Bankruptcy court, District of Delaware (Wilmington).

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--Editors: David E. Rovella, Fred Strasser