Judge OKs Detailed Examination of Avantair Executives

On Tuesday, the judge overseeing the Avantair bankruptcy case approved a motion for trustee Beth Ann Scharrer to begin examinations of Avantair CEO Steve Santo, CFO Bret Holmes, president David Haslett, associate general counsel Tom Palmiero, executive vice president Kevin McKamey and executive vice president of finance and operations Stephen Wagman “to obtain any and all documents in [their] possession related to the assets, liabilities and business operations of [Avantair].”

The six Avantair executives have been given until next Wednesday to submit to the trustee’s counsel what will ultimately be thousands of documents. The material sought includes written notes, computer files, emails (personal and company), inter- and intra-company communications, phone records (personal and company), mortgages, leases, personal bank records and individual tax returns, to note just a few.

In addition, these Avantair executives have also been ordered to “make themselves available for examination and appear before a court reporter [at the trustee’s counsel’s office in Tampa starting on September 4 at 10 a.m.] and continuing from day-to-day until conclusion, giving sworn testimony concerning the acts, conduct, business, transfers, real and personal property of the debtor [Avantair], the financial condition of the debtor, and any other matter which may affect the condition of the debtor’s estate.”

The next hearing date in the case will be on September 11, and the judge has also scheduled the initial creditors’ meeting for September 19.