Senior Communications Manager
Dornier Aviation (North America) Bankruptcy Trustee H. Jason Gold Obtains Multi-Million Dollar Judgment against China's Hainan Airlines
$5.6 million court award expected to more than double to include interest and attorneys' fees
Wiley Rein partner H. Jason Gold, the court authorized liquidating trustee for the bankruptcy estate of Dornier Aviation North America (DANA), announced today that he won a civil judgment of $5.6 million entered against Hainan Airlines, a major international airline based in China. Suit had been brought back in December 2003 to recover unpaid accounts and compensation for aircraft parts being held in China. United States Bankruptcy Judge Steven S. Mitchell conducted the trial in August, 2006. Gold was represented by Wiley Rein partners Alexander M. Laughlin and Todd A. Bromberg as well as associates Kalina B. Miller and Dylan G. Trache.
"This was a hard-fought case spanning several years and I'm pleased that the court, after carefully considering all of the testimony and other evidence, determined that Hainan had to pay for the aircraft parts that it had purchased," said Gold. "The recovery of this judgment will eventually permit us to pay millions of dollars more to the creditors of the bankrupt company. We have previously paid the employee priority claims and secured creditors in full, totaling over $2 million, as well as an additional $3 million to general trade creditors. While nothing is yet assured, we fully expect the remaining creditors to receive substantially all that they were owed, including interest."
The lawsuit against the China based Hainan Airlines was conducted in the United States Bankruptcy Court for the Eastern District of Virginia in Alexandria, the court where the DANA bankruptcy was filed back in 2002. "The assets of DANA included unpaid amounts from various companies, foreign and domestic, that DANA did business with. In some cases it is necessary to bring suits to recover these sums and Hainan Airlines is the largest remaining unpaid account in this case," Gold said. The DANA liquidating trustee is prosecuting his remaining claim against Hainan in the International Court of Arbitration of the International Chamber of Commerce. In that arbitration, Gold is seeking another $2.4 million from Hainan, also for unpaid aircraft parts, as well as the value of the aircraft parts held by Hainan in China along with additional interest and attorneys' fees.
Gold is head of Wiley Rein's Bankruptcy and Financial Restructuring Practice. The firm serves as Gold's counsel in the DANA/Hainan Airlines litigation.