After a troubled past, Freefall Adventures has made the decision to file for bankruptcy. The New Jersey-based skydiving business is going to be reorganizing, with court supervision, through the Chapter 11 bankruptcy process. The company's co-owner reported that the company does not plan on shutting its doors for good. In New Jersey, the Chapter 11 process generally allows businesses to continue operating as they go through the organizational process.
According to court records, the company has outstanding debts with Toyota and Ford Motor Credit as well as Fulton Bank. In the filing, Freefall Adventures also lists that it has unsecured funds with National Aerotech for $50,000. The co-owner also said there were some costly repairs that had to be made to an aircraft that would make it unusable for a year, along with another aircraft that is being repaired.
Another part of the debt included in the bankruptcy is attributed to a negligence lawsuit. In the past, a number of accidents have occurred. One accident involved a man fracturing his ankle while parachuting. Another accident occurred while a man was wearing a wing suit so that he could move forward while he was descending, which ended in his death.
As part of the reorganization process, Freefall Adventures' co-owner said that some of the aircrafts would be getting sold to help pay some of the debt. Companies in New Jersey that are struggling to climb out of debt may find hope through filing for Chapter 11. After the business is restructured under the process, it may become more attractive to a prospective buyer or otherwise emerge with a game plan to push toward a successful future.
Source: nj.com, "Williamstown skydiving company files for bankruptcy, owners plan to stay in business", Greg Adomaitis, Oct. 10, 2014