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Global Aviation Case Stalled by Back-to-Back Bankruptcies

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Global Aviation Holdings Inc.’s latest bankruptcy stalled when a U.S. judge said that she can’t act on the company’s petition for court protection because the air charter service still hasn’t finished its first bankruptcy, Bloomberg News reported yesterday. Bankruptcy Judge Mary Walrath ended the initial hearing for the company’s second bankruptcy after a few minutes yesterday so that lawyers could try to figure out if there’s a way to pursue the new case in Wilmington, Del., instead of returning to Brooklyn, N.Y. At the request of the company, the biggest provider of private air charter services to the U.S. military, Judge Walrath agreed to put off the initial hearing to today unless the judge overseeing the first case decides to take over the new one as well. After emerging from bankruptcy in February, Global Aviation “continued to encounter various financial and operational hurdles, including decreased demand for military cargo and passenger services resulting from government budget constraints,” the company said in court documents filed yesterday.