October 24 - Florida headquartered National Air Cargo Holdings Inc. has reorganised its freight forwarding operations.
National Air Cargo Inc. (NAC Inc.) - the company's US freight forwarding division specialising in the movement of difficult-to-move cargo - has filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code.
National Air Cargo Holdings has more than 20 subsidiary companies, and a company spokesperson said the only subsidiary in bankruptcy reorganisation is NAC Inc.
In October 2013, a United States District Court entered a judgement, against NAC Inc. The case was filed by start-up Global BTG in 2010 and alleged that NAC Inc. breached a Letter of Intent by failing to finance aircraft leases through Global. NAC Inc. contends there was no enforceable agreement and there was no breach. NAC Inc. has an appeal pending at the United States Court of Appeals for the Ninth Circuit.
Filing bankruptcy allows NAC Inc. to continue business without the immediate threat of Global's judgement, and therefore permits NAC Inc. to continue serving its clients, said NAC Inc.
Mark Burgess, managing director of NAC Inc. said his team "is committed to continuing uninterrupted diligent hard work in routing challenging cargo to locations around the globe."
Brian Conaway, vice president of finance at National Air Cargo Holdings Inc. added: "We remain committed to performing under all our contracts and growing our business."