Fallout From Failed Buyout Plays Out In Dueling Press Releases

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 mail fraud.

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' fees.

And here is Halcyon's response, which came across the wires Wednesday:

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 litigation.

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 loan's terms.

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.

FMI: www.jetonejets.com, www.halcyonjets.com/