CHICAGO (Legal Newsline) -- A federal bankruptcy court has ruled that Aviation Fuel International can collect against fuel liens that it filed against certain aircraft owned and/or operated by Ryan International Airlines Inc.
In a news release, Fuelstream Inc. said the U.S. Bankruptcy Court for the Northern District of Illinois has ordered that Aviation Fuel, a wholly-owned subsidiary of the company, can collect against the liens notwithstanding Ryan's filing of a bankruptcy petition to expunge the liens.
The liens in question amount to about $600,000, which Fuelstream said it intends to use as working capital for its business.
Fuelstream CEO Robert Catala said in a statement Monday that the company is "pleased" with the bankruptcy court's decision, saying it vindicates efforts by Fuelstream to enforce "legitimate" liens against aircraft for which it supplied aviation fuel.
"We expect that the court's decision will help aviation fuel buyers and sellers alike better understand the enforceability of aircraft fuel liens to enforce payment for fuel deliveries," he said.
According to its website, Fuelstream is an operating fuel logistics company that concentrates its supply chain management efforts in the distribution of aviation fuel to corporate, commercial, military and privately-owned aircraft throughout the world.
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