Largest US Helicopter School Seeks Chapter 7 Bankruptcy

[Doug Robertson]

Silver State Helicopters, doing helicopter flight training in 34 cities in 16 states sought Chapter 7 Bankruptcy relief protection this week, abruptly closing down operations, and leaving more than 2,500 students and more than 750 employees in the lurch. Headquartered in Nevada, Silver State operated the largest fleet of Robinson R22 helicopters and had a nearby operation at Camarillo, California airport CMA. One student pilot interviewed by the local press stated he had paid $46,000 of an 18 month $70,000 Commercial Pilot program and was due to SOLO just last Monday but was called by his instructor on Super Bowl Sunday to say the school had closed and 8 local instructors had been laid off.

Students taking out loans for their training are "devastated", but can file claims with the Bankruptcy Court. A local bankruptcy attorney stated that particularly in Chapter 7 cases, "creditors get less than 10 cents on the dollar".

The bankruptcy petition estimated that Silver State has more than 5,000 creditors, as well as from $10 million to $50 million in liabilities. A New York investment firm that purchased 60% of the company last year expects to lose the $30 million it invested in Silver State Helicopters.

See: http://www.silverstatehelicopters.com
_________________
PP ASEL

[Ztex]

Whoa!

These guys are huge...

http://www.airport-data.com/aircraft/photo/140370.html

Their website is now down too..

I captured this pic off of their site last year...




_________________
There I was at 20,000 ft, upside down and out of ammunition.

[Doug Robertson]

Yes, Zane, I tried their website to no avail-it apparently did open with a news release announcing the filing of a petition with the U. S. Bankruptcy Court for Chapter 7 relief, according to my local newspaper article. The past ads for Silver State helicopter instruction always showed a different photo taken from the air of a huge number of massed Robinson helicopters on an aircraft ramp. Imagine spending $46,000 and not soloing yet, if the newspaper is to be believed?

I suspect the next issue of GAN will cover the story. Were-is probably the operative word now.
_________________
PP ASEL

[Brad Campbell]

Wow Doug, leave it to you to find out something first even when it's in my own back yard! And almost literally too. Silver State Helicopters has their 'offices' just a few miles from my house and they fly out of KVGT, which is even closer, at all hours of the day - on training exercises I imagined. They are circling constantly and those Robinson's have a very distinctive sound. I imagine I'll miss them...maybe.
_________________
Take care,
Brad

[Doug Robertson]

Well Brad, I expect Silver State Helicopters went silent at VGT the same day they went silent at CMA and their 32 other locations. They are past tense now as far as any ops goes. I wonder who financed all the helos? They will be a filing creditor to the Court. There may be mass flyouts by the repo guys.
_________________
PP ASEL

[Brad Campbell]

I remember now - it was Jerry Airola. He ran for Sheriff a couple of years ago that ended before the race began. From Wikipedia:

http://en.wikipedia.org/wiki/Silver_State_Helicopters
_________________
Take care,
Brad

[Doug Robertson]

Brad, Thanks for the Wikipedia reference-very disturbing and shocking, and what a terrible safety record with all the NTSB accident reports involving SSH, with some fatalities and lawsuits. I particularly recommend perusing the last three external links at the bottom of the Wikipedia reference-bad news, indeed!
_________________
PP ASEL

[Doug Robertson]

Jerry Airola, the Founder/President of now closed. defunct Silver State Helicopters flight schools was a no-show Monday at the First Bankruptcy Hearing in Las Vegas Federal Court. So many creditors showed up, including about 200 former helicopter school students of SSH, that the hearing had to be moved across the street to a larger venue. One group of students reported that $23,000 of each of their $70,000 advance payments for flight instruction had been debited by SSH just two days before the Super Bowl Sunday announcement by SSH's Airola of intention to file for Chapter 7 Bankruptcy. An east coast investment firm who bankrolled SSH to the tune of a $30 million partial purchase just last year has effectively "kissed their money goodbye", expecting no possible recompense.

Does anyone know of Jerry Airola's whereabouts? Creditors, and the Court might want to know.
_________________
PP ASEL