What started off with the promised thrum of Silver State helicopter rotors has ended with a thud.
Last June, Jerry Airola made a commanding landing at Stewart International Airport. For National Express Group, the outgoing owners, it seemed a healthy addition to its portfolio. Not only was Silver State”™s huge hangar set up to lure prospective helicopter students to his newest training school, but “American Chopper” stars flew in on their personalized copter to give the company its tattooed blessing.
Now propellers have ceased to rotate, and the only thing spinning in back of Airola”™s former location is dust in the chill wind. Silver State”™s debut “American Chopper” copter”™s fate is still up in the air since the company filed for Chapter 7 bankruptcy in early February, leaving more than 700 employees stranded and nearly 3,00 students across the country with an incomplete helicopter education and no means to recoup through litigation.
In 2005, Inc. magazine ranked Silver State number 12 of 500 of the fastest-growing companies in the US. Today, Silver State joins the increasing ranks of companies folding under the weight of what Airola claimed, in a prepared statement, was the result of a troubled financial marketplace that made student loans increasingly difficult to obtain, leading to a “sharp downturn in new student enrollment.” Student loans ran up to nearly $70,000 per student.
Back in August, according to published sources, Airola sold 60 percent of Silver State to a private equity firm, New York”™s Eos Partners. When talks of bankruptcy emerged at their meeting, Airola was reportedly the lone holdout when the vote to declare Chapter 7, which is bankruptcy involving the sale of assets.
Silver State Helicopter”™s 33 locations in 17 states are now padlocked, and no one”™s answering the phone at Airola”™s North Las Vegas offices. Eos, with 60 percent equity in the flight company, expects a loss of more than $30 million.
Silver State”™s bankruptcy filing will liquidate the company”™s assets valued at less than $50,000, while outstanding debts range between $10 million and $50 million. Nearly 5,000 creditors are looking for relief.
