Current Round Is The Company's Fourth Turn In The Dock

A few days ago, ANN reported that Global Aviation Holdings had entered Chapter 11 bankruptcy proceedings. The company said in a news release that government cutbacks dating back to 2004 were the primary cause of its current financial woes.

But this is not the first time Global has sought protection from its creditors. Reuters reports that there have been three previous trips to bankruptcy court for Global, and the fourth filing may be a record.

The company had filed for bankruptcy protection in the Southern District of Indiana in 2004 and 2006. Last year, it sought protection in the Eastern District of New York. The 2006 filing in Indiana was for a subsidiary ... ATA Airline's Inc. The current filing is in the District of Delaware.

Reuters reports that while repeat filings are not uncommon, four seems to be a number not reached before. While Trans Texas Gas Corp had been to court four times, their first bankruptcy began with legal charges in 1978, which is considered to be before the "modern age of bankruptcy" began, according to a paper published by New York University professor Edward Altman.

Altman also says Donald Trump has filed for bankruptcy four times ... but for different hotels.

Global's trips to bankruptcy court have generally spelled bad news for its unsecured creditors. The best they've done in such situations was in 2006, when they were awarded a scant 2.4 percent of what they were owed.

FMI: www.deb.uscourts.gov