Disposal

RNS Number : 2236W
MAXjet Airways Inc.
06 June 2008

6 June 2008
MAXJET AIRWAYS INC.
("MAXjet" or the "Company")
Update on bankruptcy procedures and asset sales
On 24 December 2007 MAXjet filed for protection under chapter 11 of title 11 of the United States Code (the "Bankruptcy Code"). The
Company suspended scheduled all business class flight operations (but maintained its ability to resume such operations and conduct charter
operations) and petitioned the U.S. Bankruptcy Court to set procedures to sell the business.
On 1 February 2008 the U.S. Bankruptcy Court approved bidding procedures in connection with the sale of the Company's business. In
accordance with the bidding procedures, an auction was held on 12 March 2008 to select a successful bidder for the Company's business. The
Company in consultation with its Creditors' Committee, selected Maxjet Airways Acquisition Group, LLC (the "Buyer") as the successful bidder
and on 25 March 2008 the US Bankruptcy Court approved the selection. The sale agreement called for the transaction to close on 23 April 2008
if all government approvals were in place and other conditions to closing were met. While not all conditions were met to close the
transaction on 23 April 2008, it is now expected that the transaction will close by the end of June 2008.
The Buyer is owned by Kevin Clark, a shareholder and CEO of NCA Sports Group Inc., a leading one-stop travel service for university
and professional sports programs and their fans.
The Company's ability to transfer its certificates authorizing scheduled and charter flight operations will be subject to approval
by certain government agencies. Transfer of economic authority granted by the Company's Certificates of Public Convenience and Necessity
are subject to United States Department of Transportation approval under 49 U.S.C. �41105. The Company's Federal Aviation Administration
("FAA") air carrier operating certificate is not transferable. The FAA will issue a new air carrier operating certificate only if it
determines, after investigation, that the Buyer is properly and adequately equipped and able to operate safely under the FAA's enabling
statutes and regulations.
The Company expects that all proceeds from the sale of assets and the business will be for the benefit of creditors and that no
proceeds will be distributed to shareholders.
Copies of court documents can be accessed online at https://ecf.deb.uscourts.gov. A PACER password is required to access the U.S.
Bankruptcy Court online system. MAXjet case materials are listed under case number 07-11912.
For enquiries, please contact the Company's Chief Executive Officer, Bill Stockbridge at bstockbridge@maxjet.com.

Additional Information Regarding the Sale of MAXjet Airways, Inc. Assets

(a). In connection with the sale of assets the Buyer has agreed to reimburse MAXjet for certain expenses associated with maintaining
the ability to conduct flight operations between 12 March 2008, the date of the auction, and 23 April 2008, the anticipated closing date, up
to a cap of $783,000. MAXjet and the Buyer have agreed to certain additional subsequent funding following 23 April 2008. At closing Buyer
will also pay $850,000 in cash to MAXjet as consideration for the majority of the assets of MAXjet.
(b). Following the closing, the Company's remaining assets will include two aircraft engines which are currently being marketed and
other sundry assets which are in process of being realised.
(c). MAXjet previously conducted all business class scheduled and charter air transportation operations. Following the acquisition,
Buyer LLC will primarily conduct charter air transportation operations.
(d). MAXjet will realize no profits from the sale of assets or operations.
(e). The value of the assets sold to Buyer was determined at the public auction held on 12 March 2008.
(f). The sale proceeds will be applied to administrative costs of the bankruptcy case and the debts of MAXjet Airways, Inc. No proceeds
are expected to be available for distribution to shareholders.
(g). As soon as practical following the closing, sale of the remaining assets and the distribution of the assets to creditors the
affairs of MAXjet will be wound up through the U.S. bankruptcy process and MAXjet will be struck off. The shares of MAXjet. are expected to
have no monetary value and to be canceled.
(h). After the closing and the affairs are wound up there will be no directors of MAXjet.
(i). The loss before tax for the 6 months ended 30 June 2007 was $49.741 million and the loss before tax for the year ended 31 December
2006 was $78.996 million. The net assets as 30 June 2007 were $36.070 million.
(j). Pillsbury Winthrop Shaw Pittman LLP is counsel for managing the winding up process.
This information is provided by RNS
The company news service from the London Stock Exchange

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