Saturday, May 03, 2014

Direct Air owner files for bankruptcy

Edward Warneck, the former public face of defunct charter service Direct Air, has filed for personal bankruptcy in South Carolina amid the continuing liquidation of the company in federal bankruptcy court in Worcester.

The Myrtle Beach, S.C.-based charter air service, which served Worcester Regional Airport, abruptly canceled all flights two years ago, stranding many area passengers in Florida and ruining spring vacation plans for others.

Mr. Warneck was one of the company's original owners and served as its spokesman and marketing director. The company and its executives have been the subjects of lawsuits and investigations into Direct Air's finances and sudden collapse.

In his Chapter 7 bankruptcy petition filed in April, Mr. Warneck claimed $201,000 in assets, including his four-bedroom house in Myrtle Beach, and $26 million in liabilities, almost all of which are related to the complicated Direct Air bankruptcy case.

He reported personal income of $1,830 a month as a salesman for Carrabba's Italian Grill Store in Myrtle Beach.

Worcester lawyer Joseph H. Baldiga, the trustee appointed to oversee Direct Air's liquidation, has been pursuing Mr. Warneck and other former Direct Air principals to recover money paid to them by the company before its collapse.

"We have actions against all the insiders," he said.

Mr. Baldiga said he hasn't decided yet whether to oppose Mr. Warneck's bankruptcy petition in court, but is considering doing so to protect his claims against the former Direct Air owner.

Utah-based Merrick Bank also is suing Mr. Warneck and other former Direct Air executives, seeking to recoup some of the millions of dollars it paid out refunding credit card payments to passengers left holding worthless tickets two years ago.

The U.S. Department of Transportation has been investigating the Direct Air failure and, over the last two years, has fined several air carriers that contracted with Direct Air to provide flights. 


Source:  http://www.telegram.com

Edward Warneck: