Lendor Filed Suit Over Missed Payment

This isn't going to look good on somebody's credit report.

Flyi, Inc., parent company of struggling start-up Independence Air, says one of its creditors repossessed a 50-seat regional jet, leaving the company with 72 in its fleet.

Independence, which has been working to stay out of bankruptcy court, said the lender filed suit against the airline in New York after Independence failed to make a payment.

Already, Independence, which flies to 39 cities out of its Dulles International Hub, has agreed to return approximately 20 of its aircraft to GE Capital Aviation Services and is trying to restructure payments on 27 more. GE has reportedly agreed to restructure the airlines' $19.5 million, five-year loan.

Sunday, one airline industry analyst, Robert Ashcroft from UBS Investment Research, told the Washington Post that no creditor really wants to shove Independence over the edge and into bankruptcy. Then again, he said, "they're not charities either, and it takes only one to lose patience and issue a default notice to start to unravel the situation."

The Post reports Ashcroft gave Independence Air a 30 percent chance of survival.

FMI: www.flyi.com