Evergreen International Airlines, based out of McMinnville, Oregon, has announced its intention to dissolve the company by filing for chapter 7 bankruptcy in a Delaware bankruptcy court. The announcement comes as little surprise to those following the company’s struggles over the last few years.
The History of Evergreen
Originally started in 1960 under the name of Evergreen Helicopters, the airline was established by Delford Smith in 1975. Since retiring multiple aircrafts in 2006, the fleet consisted of strictly Boeing 747s. The company had hubs at John F. Kennedy International Airport and Honk Kong International Airport.
The bankruptcy filing reveals that the Evergreen companies have assets of nearly $100 million and collective debts of nearly $500 million. A lengthy 108 page document revealed almost 5,000 individual creditors. The chapter 7 petition looks to completely dissolve the company.
What Chapter 7 Means
The chapter 7 bankruptcy filing comes just months after the company sold the Evergreen Helicopters Company to Erickson Air-Crane in Portland for $250 million. Smith has noted that those monies will be used to pay off some of the debt owed to creditors.
Seven different entities of Evergreen are listed under the chapter 7 petition. They are as follows: Evergreen Defense and Security Services, Evergreen International Aviation, Evergreen International Airlines, Evergreen Aviation Ground Logistics Enterprise, Evergreen Systems Logistics, Supertanker Services, and Evergreen Trade.
While the chapter 7 filing marks the end for almost all of Evergreen and its related entities, the fate of its non-profit affiliates is still to be determined. The Wings and Waves Waterpark and Evergreen Aviation and Space Museum, located on Oregon Highway 18 in McMinnville, are currently under investigation. The Department of Justice is investigating whether Evergreen commingled non-profit and for-profit funds.