ONE Aviation Creditors Again Push for Conversion to Liquidation

Creditors of One Aviation Corp. asked a bankruptcy court to force the jet maker to liquidate under Chapter 7, arguing that it’s administratively insolvent.

The Albuquerque-based company, which sold substantially all of its assets at the end of last year, should have its Chapter 11 case converted to Chapter 7 liquidation “to cut off further administrative burn,” the committee of unsecured creditors said in a filing Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The motion is the committee’s second bid for a conversion, following an earlier attempt in May 2020. The court then denied the motion ...