MYRTLE BEACH, S.C. (AP) - One of the founders of Myrtle Beach-based Direct Air has filed for personal bankruptcy protection, a move that halts a lawsuit filed against him by the trustee in the airline's corporate bankruptcy case.
The Sun News of Myrtle Beach reported (http://bit.ly/1f8fLu9) Ed Warneck filed for Chapter 7 bankruptcy liquidation. He claims about $200,000 in assets and more than $26 million in debt.
Warneck was president of the airline, which abruptly stopped flying in March 2012.
The personal bankruptcy filing halts a lawsuit filed by Joseph Baldiga, the trustee in Direct Air's corporate bankruptcy case. Baldiga is seeking to recover more than $550,000 that Direct Air paid to Warneck.
Baldiga also is seeking to recover nearly $2.7 million the charter paid to the three other founders along with unspecified punitive damages.
Information from: The Sun News, http://www.thesunnews.com/Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.