ONE Aviation Bankruptcy Converted to Trustee-Run Liquidation

A bankrutpcy judge ordered ONE Aviation Corp.'s Chapter 11 case to be turned over to a Chapter 7 liquidator, saying the time is right for a court-appointed trustee to resolve remaining disputes after an asset sale.

Judge Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware granted in a telephonic hearing Thursday an unsecured creditors’ committee’s uncontested request for the conversion.

A fiduciary with fresh eyes needs to take over the company’s wind-down process and sort out disputes related to professional fees and asset sales, said Sontchi. The conversion order must also be stripped of language ...