Fallout From Failed Buyout Plays Out In Dueling Press
Sometimes, it's best to simply sit back... and let two warring
parties duel it out, until either a victor emerges or both
combatants are too tired to continue. With that in mind, ANN
presents two press notices that came across the wire this week,
concerning what obviously seems to be the total breakdown in
communications between two charter aircraft companies, Jet One Jets
and Halcyon Jets.
Halcyon recently entered into an agreement to purchase Jet One
Jets... but later opted not to pursue the buyout, a bit of news Jet
One apparently did not take so well.
ANN has edited these releases for formatting, but has not
altered the text of either release. First, here's the notice from
Jet One Jets, which hit the wires Tuesday...
Jet One Jets, Inc has filed an action
in the United States District Court for the Eastern District of New
York against Halcyon Holdings, Inc. and Halcyon Jets, Inc. and it's
principles including it's former chief executive officer as well as
Alfred Palagonia a.k.a. Al Palagonia, under the Racketeer Influence
Corrupt Organization's Act (RICO), alleging acts of wire fraud and
The complaint alleges that Halcyon, a
publicly traded corporation, utilizes front men when in fact,
Alfred Palagonia, a convicted felon and an individual barred from
working in the securities industry is the de facto chief executive
officer of Halcyon.
Halcyon Jets Board of Directors
includes Spike Lee and the company's spokesmen include NBA All-Star
Shaquille O'Neal, both personal friends of Mr. Palagonia.
By virtue of the violations alleged,
Jet One Jets is seeking $15,000,000.00 in compensatory damages
together with treble damages, punitive damages and attorneys'
And here is Halcyon's response, which came across the wires
Halcyon Jets Holdings, Inc. today
announced that it has filed a lawsuit in New York State Supreme
Court against Jet One Jets, its executives and other parties for
defamation. The suit seeks $5 million in compensatory damages as
well as $100 million in punitive damages relating to a defamatory
press release issued by Jet One Jets and its principals.
Halcyon is also in the process of
responding to a lawsuit filed by Jet One Jets alleging RICO and
other alleged wrongdoing. Halcyon vigorously denies the allegations
made by Jet One Jets in its lawsuit and intends to not only defend
itself against the claims but to seek defense costs for frivolous
Contrary to the false statements
disseminated by Jet One Jets, the Company's publicly available
filings made periodically with the Securities and Exchange
Commission have always included accurate information regarding the
identity of the Company's officers and directors. In addition,
Halcyon intends to vigorously pursue Jet One Jets and its
principals personally for the damages that may arise from their
false, malicious and irresponsible actions.
As previously announced, Halcyon
entered into a letter of intent with Jet One Jets to acquire that
company, and at the same time loaned $150,000 to Jet One Group,
Inc. in order to fund its working capital. Upon commencing its due
diligence review of Jet One Jets, Halcyon determined that the
acquisition would not be in the best interest of Halcyon's
shareholders, and therefore terminated the negotiations and
demanded repayment of the $150,000 loan, in accordance with the
Jet One Jets is in default of its
repayment obligations and appears to have instituted the lawsuit in
an effort to avoid its defaulted repayment obligations.