Spotlight: A New Chapter--7--for Bankrupt Air 21

Assets of the bankrupt Fresno-based commuter airline Air 21 will be liquidated and distributed to creditors. A federal judge in Fresno this week granted Air 21’s request to convert its Chapter 11 Bankruptcy Court case into Chapter 7, ending its last hope to become financially viable again. Air 21 had been looking for investors to rescue the low-fare carrier without much success since the initial bankruptcy filing in January. The company valued its assets at about $1.9 million.