ssh closed

[Motox]

I feel bad for the people who are getting screwed by this... but on balance, this is probably a good thing for the industry.

 

"A good thing for the industry"? How come you say that?

How will this effect the job market? How many students were studying and employees were working for ssh?

[FUSE]

"A good thing for the industry"? How come you say that?

How will this effect the job market? How many students were studying and employees were working for ssh?

 

For a while the market will be flooded a bit w/ Instructors but that will eventually settle.

 

It is a good thing for the Helicopter Training Industry. There were A LOT of people that were taken advantage of with his program. Folks that for what ever reason couldn't make it but were still out the 70 grand because they went past that point of no return as far as the money goes. No other school takes either almost or all of your 70 grand budget before you even have your PPL. There are two things to consider for any school. The quality of knowledge you will gain, and how much you pay for it. If you forget about the helicopter/instructor to student ratio that was horrible, it wasn't too bad for the skills you acquired. I've met some SS folks and they had some pretty good experience at low hours, but I don't know if that was the norm. But the financial part of that school was an absolute joke, and I don't think really many folks can or will deny that... Strictly because of the financial stuff this place gave the training part of the industry a bit of a black eye.

[chopperdan]

For a while the market will be flooded a bit w/ Instructors but that will eventually settle.

 

It is a good thing for the Helicopter Training Industry. There were A LOT of people that were taken advantage of with his program. Folks that for what ever reason couldn't make it but were still out the 70 grand because they went past that point of no return as far as the money goes. No other school takes either almost or all of your 70 grand budget before you even have your PPL. There are two things to consider for any school. The quality of knowledge you will gain, and how much you pay for it. If you forget about the helicopter/instructor to student ratio that was horrible, it wasn't too bad for the skills you acquired. I've met some SS folks and they had some pretty good experience at low hours, but I don't know if that was the norm. But the financial part of that school was an absolute joke, and I don't think really many folks can or will deny that... Strictly because of the financial stuff this place gave the training part of the industry a bit of a black eye.

I agree, I was a student of SS. the program was good up to PPL, from there it was mostly home study. payed $70000 for a home study. Students took a long time to get there cert. because of the student helicopter/ CFI ratio. all in all, it was a scam and it is good that it is no more.

[chopperdan]

I agree, SS did okay from start to PPL, but after that you was forgotten and getting flight time was hard because of the student helicopter/ CFI ratio.

 

From Comm. to CFI it was alomost all home study. you was almost on your own. It was a scam and it is good that it is no more. For me my dream I think is over, but it should be a lesson learned that all new up comming pilots I hope will learn.

[Spierman]

You guys must have had a "good" location. Our location was terrible from the start. Ground "instructors" who had no business in a classroom, poor scheduling procedures, poor oversight of instructors who gouged student accounts for flight time, etc.

 

I am no longer a fan of big schools. If they are aggressive in advertising, have a pretty web site, etc. they are not putting time/money into training. This may not be true in all cases, but it is a personal rule I will live by from now on. I will recommend attending a ground school through the community college systems from now on.

 

5 reasons: 1) It is independent of the flight school (or should be). 2) Instruction/curriculum is structured/inspected to a higher standard than most flight schools (even Part 141 schools). 3) You get college credits for it. 4) You can usually pick up some A&P classes at the same time.

5) Instructors are normally accredited to some extent and scrutinized by the staff/faculty.

[Torfinn]

Rumors of the SSH bankrupcy has spread all the way to Norway. All I can say is that I'm saddened on behalf of all students and employees of SSH, and that I wish you all good luck in the time to come.

[NotarPilot]

Ooooh, I want so bad to flame this thread about how I feel Silver State almost got me suckered into their scheme. But, the only thing I can do after thinking on this for a few days is tell all of you who are left high and dry at the moment that I hope and pray you get reimbursed the money due to you. This is really a sad experience as it only looked like a matter of time like the poster above me that something like this would happen. Ya know what saved me from getting dragged in this? This site right here! I went home and did some research before I committed and am sure glad I did. I mean, who wants to be that much in debt and not be certified? I really hope you guys get the money you deserve.

 

I authored the original article on wikipedia about SSH. I was surprised to find nothing written about it. I used my downtime at work and did hours of research to post about SSH hoping prospective students would read between the lines and realize what an evil empire that company was. Not offense against the people who worked there. Wikipedia seems to be a place people go for quick research without having to read the pages upon pages of things written on a helicopter forum such as this one, especially if they don't know about it. Did anyone benefit from the SSH article on wikipedia where maybe they were influenced against going there? Just curious. I wish I wrote that article a long time ago. Maybe we could have saved some other lives.

 

On a side note, I doubt Mr. Airola has any real regrets about what he did to anyone here. I've heard on swiftchopper.com that he's gone into hiding, perhaps because of the numerous threats against him. I've heard article upon article about him. My conclusion is he is not all together right in the head. I honestly believe he may have a screw loose. I've seen him speak and I cannot believe the BS that would come out of his mouth. I can't believe he actually would think someone would actually believe a word he says. Unfortunately, all too many people did.

[NotarPilot]

http://www.silverstatehelicopters.com/

 

Its official. Silver State Files Chapter 7. I've been reading all the info on here. I've read about 20 minute conversations with Jerry, giving me and the fellow students a glimmer of hope that this will turn around. If you to SSH website, they have posted their Chap 7 online. I had my Private Pilot check ride scheduled for next weekend. Now I can't get it done, because during the check ride I am PIC, but to rent a helicopter, you have to have a Private pilot rating for insurance.

 

Just to clarify about the loan. When we first received the loan, they took 24K upfront for books, ground school, etc. I was told they would take out the rest is increments. I logged on to my loan account, only to find that they did in fact take it ALL, but in increments of 24K. Hopefully the newly signed students escaped.

 

I hate to rain on your parade but if Jerry had an intent of turning this thing around they would have filed Chapter 11 (Bankruptcy which allows reorganisation) not Chapter 7 (Liquidation).

[wasabi]

IF this is true then ole Jerry will only be a title in the process. the bancruptcy judge will be in control of the of the assests and debts alike. SSH will be required to file a reconstruction plan and the judge and his/her panel of advisers will review it and approve or deny it based on the overall picture of the company plan. AS I SAID the students will be the ones hurt the most as they're funds are unsecured and have little recourse.

[wasabi]

Good Riddance. They were driving up accident and insurance rates anyways.

 

What I'm interested in is where are their helicopters going and whats going to happen short term to the 22 and 44 market for purchase and lease???

 

Does anyone know what company/companies they lease their aircraft from??

 

200 training helicopters showing up on the market is going to have an impact...anyone feel like speculating?

Heliboy you are a real nice guy,by the way all the helicopters were paid in full, wholly owned by the company.

[NorCalHeliKid]

To Wasabi, your previous statement is false. Actually, every helicopter in their training fleet was at one point bought and paid for but there is a very large number of them that were lease-backs and will be going back to the rightful owners.

Edited February 19, 2008 by NorCalHeliKid

[adam32]

Heliboy you are a real nice guy,by the way all the helicopters were paid in full, wholly owned by the company.

 

 

I'd like to buy a couple of the R22's if they are cheap enough...

[rick1128]

I'd like to buy a couple of the R22's if they are cheap enough...

 

Considering the quality of their maintenance, why would you?

[Goldy]

To Wasabi, your previous statement is false. Actually, every helicopter in their training fleet was at one point bought and paid for but there is a very large number of them that were lease-backs and will be going back to the rightful owners.

 

 

My understanding is that every ship they owned last July was listed as collateral on their bridge loan...about 140 of them. So there is only ONE rightful owner, and that is the capital company that came up with the financing.

Edited February 19, 2008 by Goldy

[adam32]

Considering the quality of their maintenance, why would you?

 

Hopefully I'd find a good one...

[HelliBoy]

Heliboy you are a real nice guy,by the way all the helicopters were paid in full, wholly owned by the company.

 

I agree...I am a real nice guy. What I'm interested in is the date/location/circumstances of their eventual liquidation by whoever the heck owns them...even that seems unclear. I dont imagaine their debtors want them sitting around collecting dust if they are part of SSHs liquid assets and I'm curious as to whether anyone has heard anything about their sale. The litigation coming down the pike on SSH brought by any number of interested parties will probably have them in limbo for a while anyways.

[fry]

I agree...I am a real nice guy. What I'm interested in is the date/location/circumstances of their eventual liquidation by whoever the heck owns them...even that seems unclear. I dont imagaine their debtors want them sitting around collecting dust if they are part of SSHs liquid assets and I'm curious as to whether anyone has heard anything about their sale. The litigation coming down the pike on SSH brought by any number of interested parties will probably have them in limbo for a while anyways.

 

Ask the secured lender:

 

http://www.orix.com/orixfinance.html

[BOATFIXERGUY]

well, if you wanted to know about aircraft sales:

 

1998 BELL 407 N508SH FOR SALE

 

So I'm surfing the various helicopter for sale sites dreaming of my next bird, and I find one that catches my eye. A beautiful Red, white and blue 407. For sale by Summit Aircraft Sales. It looks familiar, then I remember where I've seen it. In a Silver State Helicopters promotion.

 

A quick check of the FAA records shows the registration was changed to Summit Helicopters on 1/23/2008.

 

Now that's awefully close to the bankruptcy filing. Now either it was sold to keep the company open for a little while longer, or......

 

Here's the link to the for sale page:

 

http://www.controller.com/listings/aircraf...B501BA18060DCC4

 

http://registry.faa.gov/aircraftinquiry/NN...p;cmndfind.y=11

[mechanic]

I don't think I would want that ship. I was told from someone at my school that it had a tether get into the tailrotor and I personnally saw it grounded because they clipped some tree's while on a contract here in E. Tx, saw the blade boxes laid out by the bird for a few days at my local airport. I leaned on the door glasses and looked into that bird just to see what a 407 looked like. They also had a 206LIII here too, at the time.

[NorCalHeliKid]

My understanding is that every ship they owned last July was listed as collateral on their bridge loan...about 140 of them. So there is only ONE rightful owner, and that is the capital company that came up with the financing.

 

So, help me understand here. I believe what you are saying is that all of thier heli's are owned by the corporation that held the rights to them as security for bieng the firm that was investing in them? That still wouldnt explain how a lease-back aircraft can possibly be taken away from the owner who owned about 40 of them on the east coast. I guess it doesnt really matter, I wouldnt want to own one anyway.

[rick1128]

So, help me understand here. I believe what you are saying is that all of thier heli's are owned by the corporation that held the rights to them as security for bieng the firm that was investing in them? That still wouldnt explain how a lease-back aircraft can possibly be taken away from the owner who owned about 40 of them on the east coast. I guess it doesnt really matter, I wouldnt want to own one anyway.

 

If SSH used them as collateral without the true owner's knowledge, it is possible. Based on what I have heard and seen about these guys, I wouldn't put it past them.

[notar11]

The company was founded in 1999 at Henderson Executive Airport with one Robinson R-22 helicopter.[4]

 

The original three owners were later bought out by their partner, Jerry M. Airola.

 

In 2002, Silver State began expanding into other helicopter operations such as external load (FAR Part 133) operations and subsequently on demand air-taxi operations (FAR Part 135) operations through their acquisition of Vista Helicopter Services in Las Vegas, Nevada. Vista Helicopter specialized in lucrative golf course charter flights among other helicopter charter services.[5]

 

In 2007, Silver State Helicopters expanded into the agriculture field with the purchase of Central Washington Helicopter. Silver State's intent was to give their students a chance to gain experience while allowing current pilots opportunities to advance their careers.[6]

 

Later in 2007, Silver State Helicopters partnered with New York private investment firm, Eos Partners which essentially created Silver State Services Corp. The plan was to give Silver State the opportunity to grow at an accelerated pace in the areas of flight training and other commercial operations.[7]

 

 

[edit] Bankruptcy

Silver State Helicopters filed a petition with the US Bankruptcy Court for liquidation under Chapter 7 of the bankruptcy code and ceased all operations on February 3, 2008, at 1733 hours Pacific Standard Time.[3]

 

At the time operations ended, the company had more than 800 employees and 2500 students. Employees of the company had no warning of the bankruptcy filing and all had their employment terminated on the same date. Students have been left with millions of dollars of debt.[1]

 

The company released a statement saying that the closure without warning was due to “a rapid, unprecedented downturn in the U.S. credit markets” which had curtailed the availability of student loans for the company’s students and that this then resulted in a “sharp and sudden downturn in new student enrollment.”[1]

 

Silver State Helicopters' assets were listed at USD$50,000 following the bankruptcy filing. Silver State Helicopters owes 5,000 creditors between USD$10 and USD$50 million dollars.[2]

 

As of mid-February 2008 former Silver State students and their attorneys were planning class-action lawsuits against the company and its owner Jerry Airola. They announced that they may also sue the banks that lent student loans due to the high interest rates and terms of the loans.[8]

 

The company websites were all removed by February 6, 2008.

[Worldcrime]

Criminal probe into Silver State collapse likely

By Mark Huber

 

February 24, 2008

Rotorcraft

 

 

As more students come forward to say they believe they were swindled by the country’s biggest civil helicopter flight school, attorney general offices in several states are looking into the activities surrounding the bankruptcy of Silver State Helicopters.

 

The school abruptly closed its doors on February 3 amid allegations by students and former employees of mismanagement, ethical lapses and possible criminal activities at the Nevada-based company.

 

The growing scandal surrounding Silver State Helicopters and its founder, Jerry Airola, could hurt the entire helicopter training industry by making it harder for students to obtain loans for helicopter pilot training nationwide and exacerbating a looming shortage of commercial helicopter pilots.

 

Several state attorneys general are looking into the activities surrounding the bankruptcy of Silver State. The company filed for Chapter 7 (liquidation) bankruptcy on February 4. Before it closed, the school had 750 employees, 2,500 students and 250 helicopters at 33 locations in 14 states. Silver State listed assets of less than $50,000 and debt of between $10 million and $50 million. The first creditors’ meeting is scheduled for March 14.

 

Silver State has been mired in litigation for years. A growing number of students have filed class-action lawsuits alleging the company took their money and failed to provide promised training. On Friday, February 1, Silver State electronically withdrew all the money from numerous student accounts, according to students’ attorneys. Most Silver State students financed their training with loans from $50,000 to $70,000. Silver State took full payment within six to 10 months, even though the training program, which promised to take students from zero time to certified flight instructor, lasted 18 months. Dan Reed, one of the lead attorneys representing the Silver State students, said the missing money was not part of the bankruptcy filing and that the activity appears “suspicious.”

 

In the week following Silver State’s bankruptcy, Reed fielded more than 750 calls from former Silver State students and employees throughout the U.S. He said he has received numerous reports of money from student accounts vanishing the Friday before Silver State declared bankruptcy. “That money was obviously not included in the bankruptcy filing,” Reed said. “Where is the money? The money went somewhere. It is not in these kids’ accounts anymore.”

 

While he said he has just begun to research his clients’ options, Reed emphasized that the first priority is to help Silver State students negotiate relief from their lending institutions. “We need to stop the payments from coming due so these students can survive,” he said.

 

In the longer term, Reed said he is exploring the possibility of pursuing a class action lawsuit “that would pierce Silver State’s corporate veil and go after the owners and officers individually.”

 

But Reed cautions that such a tack will not be quick or easy. “There’s no way to accurately predict how long it will take. They [silver State] have done everything to hide their tracks and make it as difficult as possible. It could easily take a few years” to recover the money Reed alleges was stolen from students.

 

The school was founded by Airola with a single Robinson R22 in Henderson, Nev., in 1999. He had previously worked as a police officer and owned a home water filtration business. Airola quickly built the school into the nation’s largest, using targeted advertising blitzes, seminars, deeply discounted prices and other marketing strategies. By 2005, Silver State ranked 12th on the Inc. 500 list of fast-growing small businesses, and in 2006 it reported revenue of $78 million.

 

Critics including former employees, students and competitors claim Silver State was little more than a ponzi or pyramid scheme that used helicopters as props while Airola funneled the company’s assets to friends, family members and himself. Thanks in part to Airola’s alleged profligate spending habits, Silver State burned through the average student’s entire tuition in five to six months, almost a full year before they were due to complete training, and was dependent on recruiting ever-larger pools of new students to finance the training of earlier ones.

 

Several former employees assert Airola used Silver State funds to amass a personal collection of exotic cars including a $153,000 Ford GT, buy SUVs and cars for some Silver State employees, directly pay more than $1 million in expenses for an unsuccessful political campaign and buy political influence with a variety of office holders including incumbent Nevada Governor Jim Gibbons, himself the current target of a Federal bribery investigation. Airola is one of the top fundraisers for the governor’s legal defense fund. Just last month Gibbons appointed Airola to the Nevada Economic Development Advisory Board. Silver State’s business practices widely came to light when Airola unsuccessfully ran for sheriff of Clark County, Nev., in 2006.

 

Although Silver State is bankrupt, a new investor in the company may be partly liable if students can prove they were bilked of their training money. Last September, Airola sold a 60-percent stake in Silver State to Eos Partners, a $3 billion New York private equity firm, for an estimated $30 million. “At the very least it looks like they didn’t do their due diligence,” said attorney Reed. “They should have been watching.”

 

Eos officials declined to comment for this story and Airola could not be reached. Company insiders said Airola remained on Silver State’s board and continued to have check-writing authority even after the Eos capital infusion. Last August, Silver State received a $40 million line of credit from Orix Financials secured by Silver State’s aircraft. According bankruptcy court documents, Silver State had used $33 million of the line by February 3.

[Voyager11]

This might not be of any help but the SSH office in Melbourne, Florida was just taken over by Cloud 9 Helicopter. They are a good honest and trust worthy business. I am a student with them in West Palm. Make sure you check in with Geoff Painter or Debbie Painter at Cloud 9 in West Palm Beach, Florida for further details. Maybe others will follow suit and pick up some of these satellite offices. I wish all of the student effected by SSH Helicopter all the best you did not deserve this. Best wishes to all of you.

 

 

Respectfully Submitting

VoyagerII

[Voyager11]

Heliboy you are a real nice guy,by the way all the helicopters were paid in full, wholly owned by the company.

Hmm that is strange we just bought four of SSH R22's "which where in very poor shape by the way" from the leasing company that owned them. Two from Colorado and two from Arizona.