Rumors of Bankrupt Silvers State Helicopter?

Question

Hi everyone, I'm a SSH student and I would like to comment that Silver State helicopter has gone in bankrupt, so if you all want to get together, please write down and lets make happens! WE WANT TO BE A PILOT AND WE WILL.

Answer 1

I am one of the washington students, Have been going back and forth with this company for about 3 months, I have aquired a team of lawyers about 2 months ago, we are still moving forward with a lawsuit, if you want to jump on board contact me [e-mail] This company has railroaded 80% of its students. Lets get em.

-Mike

Answer 2

Silver State Helicopters is gone. Do not do business with anyone associated with SSH. Do not hire their, now out of work, employees for any aviation job. Secure your watch if you are found near anyone that worked for SSH.

I question the integrity of anyone who has helped "build" SSH. This includes all former employees, they new the truth. They were just as willing to take your money and profit from questionable practices.

Modification:  The signs were very clear to customers, up to a year ago.  The signs should have been more clear to CFIs/Employees even sooner.  There were 3 types of people at ssh: CFIs/Employees lacking integrity,  CFIs/Employees lacking situational awareness, and students who wanted to get as much training as possible and get out.  In either of the first two cases, would you want them operating your machines?

Call the student loan programs you are in and cancel any future disbursements.

Do not pay more than 50% of going rate for any "fire sale" assetts you may be able to acquire from SSH. Get a clean bill of sale for anything you do pick up and use banking sources as independent as possible from SSH.

Do not resume flight training with any spin-offs from ssh. The same people with the same values and integrity will be running them.

Do not accept any "deals" from them to complete training.  Do not let them burn us twice!

Answer 3

OK, but did you have a question?

Answer 4

The students in Washington are not going to take this Lying down. Everyone afiliated with the company is telling us to wait a couple weeks to see what happens.  We are through listening to SSH and we are taking action. As students we must band together. We do not need bashing or flaming against SSH we need to get organized. We will be opening a web site as soon as possible to help give people some direction and a destination to communicate with each other.  We will not be promoting any other schools.  We are here to help each other!! Join with us if you are a former student or instructor! For information e-mail [e-mail]

Answer 5

I haven't heard about that. I hope it's not true but it very well could be. This happened to me once at another flight school many years ago and it really took me a long time to recover financially so I could start flying again. The students who have paid up front for flight training are always the big losers in a bankruptcy.

True or not, here's some old news that you might want to read about the owner of SSH: http://www.reviewjournal.com/lvrj_home/2...

Answer 6

Great, we all are in debt with no license.......

This guy should be in prison!

Cut from Wikipedia:

As of Feb 3rd, 2008, Silver State Helicopters has closed the doors for all of it's facilities.

Below is an open letter from Jerry Airola to his staff and students:

I know the rumors have been flying and I’ve been told some of you have taken action in anticipation of a company shut down some time today. The Board of Directors has been working diligently with student lenders and the financial institution that carries the majority of Silver State’s debt. The entire lending industry was crippled in October and the impact hit all student lending sources particularly hard; we felt this full force. Silver State Helicopters has done everything possible to weather the storm and will continue to work on a solution that will allow this company to continue to explore options.

The Board of Directors has not made a final decision as to Silver State Helicopters. Because the monthly operating expenses, even at the recently streamlined levels, continue to exceed cash flow the Board has elected to suspend all operations effective at 5:00 PM today. All offices are closed effective immediately and all employees are terminated as of 5:00PM today as well. All employees will receive a final payroll check via your normal payment method (check or direct deposit by ADP). I know there are many questions that you will have and I will attempt to answer some of those now:

1. When will I receive my final paycheck and what will it include? Your paycheck will be processed immediately and sent to you via ADP as it has in the past. You will be paid through close of business today. The company does not have time cards collected already to reflect the most recent days so, as is common practice in these cases, non-salaried employees will be paid assuming a full 40-hour work week.

2. What will happen to my 401K? Your 401(k) remains secure with the outside service Company as it always has been.

3. If Silver State Helicopters are able to restructure will I be offered re-employment? The Board of Directors will continue to work to find the best possible solution for Silver State Helicopters. If the company can be restructured it would certainly make most sense to allow priority hiring to former employees that apply.

4. Should I seek other employment? Yes - Silver State Helicopters can make no promise of re-employment at this time and there should be no hesitation on your part to secure alternative employment.

5. Will I be able to retrieve my personal belongings from the office? Yes - You will be notified as to the available times and procedures to recover any personal property from a locked office within the next few days. Please do not take anything from the locations that does not belong to you unless you have written permission to do so as that would constitute theft. Surveillance equipment has been recently installed in most locations to protect assets.

6. I have a company vehicle, should I turn that in? Yes - Non-employees are not authorized to drive company vehicles. It is presumed reasonable that all vehicles will be returned to the closest Silver State Location no later than Monday, February 4th. You should co-ordinate all vehicle returns with Lisa Gunther.

7. What will happen to students? The students will be notified as soon as a clear direction is confirmed.

8. I have company assets at my home or in my possession, what should I do? Contact Steve Shaw or Lisa Gunther and make arrangements to return all items no later than Monday, February 4th.

9. What about health insurance? Angi will be processing termination for all employees on Monday. This will trigger COBRA notices and you can contract the carrier directly to preserve your coverage. The company also encourages you to begin your process immediately so that you may collect unemployment insurance.

Please accept my most sincere apologies for the stress and sadness this may cause you. I know that many of you consider this company and the employees to be your home and your family. Holly and I have made a decision to fight for every option to help the people of this company put something together so we may again enjoy the success we have shared in the past.

Most of you have been comfortable in writing me or calling me I the past and I will continue to keep my door open. Please realize that I am inundated with calls and e-mails right now and it is difficult to return all in a timely manner when there is so much work to do. Regardless of the final outcome over the next few weeks I will be eternally grateful for the friends that I have made and the greatness that we all have shared. There are few people in the world that will ever have the opportunity to share in the experience that we all have over the past eight years. If someone had told me back in 1999 that this company would do all it has done and then face the challenge that it is facing now I would still gladly sign on as an opportunity of a lifetime and an education that can not be bought. Thank you all for the opportunity to work with a great group of people.

I can not tell you how hard it is to push “send”.

With love and respect for all of you,

Jerry Airola

Answer 7

Looks very true.  I always felt that Jerry always told us exactly what we wanted to hear.  Looks like he cooked the books and got out just in time.  Once a company declares bankruptcy I think we lose any chance of recovering funds.  I'm gonna go steal a helicopter.

Answer 8

I know the rumors have been flying and I’ve been told some of you have taken action in anticipation of a company shut down some time today. The Board of Directors has been working diligently with student lenders and the financial institution that carries the majority of Silver State’s debt. The entire lending industry was crippled in October and the impact hit all student lending sources particularly hard; we felt this full force. Silver State Helicopters has done everything possible to weather the storm and will continue to work on a solution that will allow this company to continue to explore options.

The Board of Directors has not made a final decision as to Silver State Helicopters. Because the monthly operating expenses, even at the recently streamlined levels, continue to exceed cash flow the Board has elected to suspend all operations effective at 5:00 PM today. All offices are closed effective immediately and all employees are terminated as of 5:00PM today as well. All employees will receive a final payroll check via your normal payment method (check or direct deposit by ADP). I know there are many questions that you will have and I will attempt to answer some of those now:

1. When will I receive my final paycheck and what will it include? Your paycheck will be processed immediately and sent to you via ADP as it has in the past. You will be paid through close of business today. The company does not have time cards collected already to reflect the most recent days so, as is common practice in these cases, non-salaried employees will be paid assuming a full 40-hour work week.

2. What will happen to my 401K? Your 401(k) remains secure with the outside service Company as it always has been.

3. If Silver State Helicopters are able to restructure will I be offered re-employment? The Board of Directors will continue to work to find the best possible solution for Silver State Helicopters. If the company can be restructured it would certainly make most sense to allow priority hiring to former employees that apply.

4. Should I seek other employment? Yes - Silver State Helicopters can make no promise of re-employment at this time and there should be no hesitation on your part to secure alternative employment.

5. Will I be able to retrieve my personal belongings from the office? Yes - You will be notified as to the available times and procedures to recover any personal property from a locked office within the next few days. Please do not take anything from the locations that does not belong to you unless you have written permission to do so as that would constitute theft. Surveillance equipment has been recently installed in most locations to protect assets.

6. I have a company vehicle, should I turn that in? Yes - Non-employees are not authorized to drive company vehicles. It is presumed reasonable that all vehicles will be returned to the closest Silver State Location no later than Monday, February 4th. You should co-ordinate all vehicle returns with Lisa Gunther.

7. What will happen to students? The students will be notified as soon as a clear direction is confirmed.

8. I have company assets at my home or in my possession, what should I do? Contact Steve Shaw or Lisa Gunther and make arrangements to return all items no later than Monday, February 4th.

9. What about health insurance? Angi will be processing termination for all employees on Monday. This will trigger COBRA notices and you can contract the carrier directly to preserve your coverage. The company also encourages you to begin your process immediately so that you may collect unemployment insurance.

Please accept my most sincere apologies for the stress and sadness this may cause you. I know that many of you consider this company and the employees to be your home and your family. Holly and I have made a decision to fight for every option to help the people of this company put something together so we may again enjoy the success we have shared in the past.

Most of you have been comfortable in writing me or calling me I the past and I will continue to keep my door open. Please realize that I am inundated with calls and e-mails right now and it is difficult to return all in a timely manner when there is so much work to do. Regardless of the final outcome over the next few weeks I will be eternally grateful for the friends that I have made and the greatness that we all have shared. There are few people in the world that will ever have the opportunity to share in the experience that we all have over the past eight years. If someone had told me back in 1999 that this company would do all it has done and then face the challenge that it is facing now I would still gladly sign on as an opportunity of a lifetime and an education that can not be bought. Thank you all for the opportunity to work with a great group of people.

I can not tell you how hard it is to push “send”.

With love and respect for all of you,

Jerry Airola

Answer 9

This is true. I spent HOURS last night trying to console my boyfriend; nothing has gone right in his life except SSH, and now that is bust.

I spent hours online from the time he called me heartbroken until the time he was safely home trying to find ANYTHING that even hinted this was the direction they were headed and I found nothing. HOW could something like this just suddenly happen?

If the students were to ban together, what would that accomplish? The best hope I can see is finding another flight school that could possibly coordinate with the lending banks of those students who took a student loan and work with them to give them their dreams of becoming a pilot - would this work, though? Who would be willing?

Answer 10

It looks like it is true. I am very sorry for you guys. I wish I had something helpful for you, but I'm really not sure what you can do. If there is by chance anything I could do to help you find a way to finish your training, please feel free to e-mail me.

You may have already seen these forums, but they will probably be a good place to get the latest news and network with other students:

http://www.verticalreference.com/

http://www.justhelicopters.com/topics/ca...

Here is a forum thread on it:

http://www.justhelicopters.com/topics/de...

Good luck!

(Added)

Take a look at SSH's website. It has an announcement of their bankruptcy. You should probably watch for any official information here:

http://www.silverstatehelicopters.com/

(Added)

I think you guys really need to spend some time on the above forums so you can coordinate with other victims. You are most definitely not alone, and if you band together you can find a collective solution. There is a lot of discussion about it on the forums above, so take a look.

As far as the founder is concerned, I believe that he will get what is coming to him, in this life or the next.

Here is some additional info:

http://originalforum.justhelicopters.com...

Answer 11

I believe the guy on the last blog I read is an IDIOT!!! How can you blame any of the CFI's or students of SSH. These people did not help build this grand scheme, it was the work of Jerry and his little "VEGAS" crew of political criminals. CFI's and students only crime was to believe the ARMY RECRUITER type tactics and pipedreams!!!!!!!!!!!!!!!! Please do not add to the hurt that these people have recently suffered!!!!

Answer 12

I am a former student (victim) of SSH and I can tell you that the loan you have is against your name and not SSH and sadly Jerry and crew has your money and probably with impunity!  This leaving countless thousands to pay his bills.  Jerry has just pulled off what is probably one of the greatest school scams in history, perhaps the greatest!  

My opinion is that Jerry should be drawn and quartered (see "Braveheart") and then his head placed on a poll to rot in the sun as they did back in the Roman days to make an example of such characters...  

But seriously, with the scope of this company and number people it will effect, great attention should be brought this abuse of the public trust.  Since no doubt Jerry dotted his "i"s and crossed his "t"s legal speaking, it will take some deep digging to eventually prosecute this guy, but no doubt he should be prosecuted.  So, I would implore anyone involved in this to write your congressman, both separately and collectively, so that hopefully they will begin an investigation into Jerry's business practices.

Locally, here in Las Vegas, George Knapp of Channel 8 News, has already done a great deal of investigating into Jerry's business practices and there was a full page article about that by Knapp in the Las Vegas Review Journal back when Jerry thought it was time for him to become Mayor....lol.  

Fortunately, I left the SSH "family" early on in my student career and was actually refunded some money, but only after a lengthy face-to-face with the Jerry (in his thrown-like office, no kidding), most of which involved him pointing out how great he was...sad, but true....anyway, every dog has its day....and his is comin'!

So, band together and try to involve the helicopter community if you can. (However, I'm sure he was very tight with Frank Robinson, but Frank might be looking for a way to distance himself).  What I have seen of the helicopter community, from the outside looking in is, its a true brotherhood and maybe they'll place SSH victims under their collective wing (rotor) to in fact punish one whose actions have done damage to the good name of a great fraternity all for his desire to be Mayor, or King, or what have you...

Answer 13

I am a current student at Silver State. All I can tell you is that when I went in for my flight today there was a security gaurd and I was barely allowed inside the hanger. They had already packed up almost half the stuff in the hangar (the simulator was already gone) The GM at my location just kept telling me to wait it out a couple of weeks and that I would be contacted, but to not bother to show up for class or flights until further notice. They insist it will be all straightened out and to "keep studying and stay in the books" but the instructors that were packing up there stuff did not look optompstic to say the least.  I wasn't even allowed to retrieve any of my personal things that I kept there. I was told that everyone would get there stuff back... eventually.

I'm in total shock... I don't even know what to do next, but waiting around for something to happen does not seem like the right thing to do.

ADDING:

The students in Washington are not going to take this Lying down. Everyone affiliated with the company is telling us to wait a couple weeks to see what happens. We are through listening to SSH and we are taking action. As students we must band together. We do not need bashing or flaming against SSH we need to get organized. We will be opening a web site as soon as possible to help give people some direction and a destination to communicate with each other. We will not be promoting any other schools. We are here to help each other!! We are already in contact with many students accross the country. Join with us if you are a former student or instructor!

For information e-mail Mat at [e-mail]

Addtional contacts:

Randy [e-mail] or

Jeff  [e-mail]

There are also 2 groups that have been started to help facilitate communication between former students and employees:

http://groups.myspace.com/SilverStateStu...

http://groups.yahoo.com/group/SilverStat...

Answer 14

Well, enjoy the reading, and a quote,



'He has swindled innocent families out of their entire life savings. He has ruined the lives of many, many people.'



http://www.swiftchopper.com/index.html

Answer 15

I'm a ssh student in Arlington, WA. I spoke with my instructer this morning. She said that 5pm last night 02/03/08 everyone was asked to grab all of their personal effects and were escorted from the building. She confirmed the rumors that SSH is bankrupt

Answer 16

wow, my instructer just texted me, this is messed up. what the **** now?

Answer 17

I'm a student @ the Arlington, WA acadamy and was shocked to hear the news this morning.  My instructor called me to let me know that the school (all 37 schools) were closing their doors effective today.

The best we can do is wait a little while to see what happens, but I can tell you that in the meantime I will be consulting with my attorney to find out what legal options may be available and get all of that ready in case it's needed.  I hope that as students we can be reimbursed for the cost of the time we have not flown so that those dollars can be spent repaying loans or used to complete training, or that something happens where they are able to reopen.  I fully enjoyed my time with Silver State.  I also won't be letting this closure stop me from completing my training.  I started this training with Silver State, but if I can't complete it with them, I will finish it somewhere else.

Answer 18

When I heard Silver States radio ads it sounded fishy.  People will do almost anything to fly.  He probably had this thing all planned out from the beginning.  My heart goes out to you pilots.  I know many of you probably do not have the money to continue your training on a pay as you go basis; but I urge the students and people who want to fly to go down to your local airport and continue your training and reach your goals.

On a brighter note, there probably never really was a " shortage of helicopter pilots" as he used for a selling point.  He was however, glutting the market for helicopter pilots which would depress wages.  For those of you who can make it; however, this will help you out in the long run.

Answer 19

If you are a student at the New Braunfels, Texas location, please contact the New Braunfels Police department to file a complaint.  The department has assigned an investigator to this.  You can call the department at 830-608-2179 and ask to speak to the investigator handling the Silver State Helicopter case.

Just FYI,  several companies have contacted the city concerning taking over the facility to run another school, and the city is pushing for a provision that the new company help the "orphaned students" that had paid but have not completed the training.    

Here is a link to the local news feed on it.

http://www2.mysanantonio.com/multimedia/...

Answer 20

AS a former employee (Here is the kicker, they HIRED me one week ago) I can first say that it is NOT a rumor. I can understand and really feel for the students that have signed contracts to get up and flying (I was ALMOST one of them) Most all of the instructors got there the same way you current students were TRYING to, so they were certainly not involved in the failing of this company. I certainly do not claim to understand business, but from what I have been TOLD, this company was run just this side of SHADEY!!! (But legal)

For all of those of you that hold hope of waiting a few weeks... consider this (Not sure if you SEE the full picture) ALL employees have been TERMINATED and as you can READ in that copy of the "FINAL LETTER FROM JERRY" they are NOT telling us there is a posibility of RETURN... I, along with most of the OTHER mechanics are scrambling to find jobs so that we can just keep a ROOF over our heads and food in our mouths..  IT is VERY hard to just FIND and get signed up with any aircraft company. (10 yr background checks and criminal backgrounds takes some time before they even CONSIDER hiring you) so IF "IF" Silver State WANTED to reopen...  WHERE are they gonna pull enough MECHANICS out of their ASSES to keep those birds flying? AT the rate the students (There were a LOT of you) were flying those helicopters they were having 50 hr inspections as often as commercial aircraft and NOTHING can fly with out current inspections and airworthieness. There is no real chance of this "springing back"   SORRY!!!  I have already filed unemployment, food stamps, etc...   I am just a single dad with TWO kids...   You pilots have NO idea how SCREWED some of us really are...

Answer 21

I'm also a SSH student. I heard rumours last night of this.I just received a phone call from my instrument instructor that as of 5 pm this evening all doors are closed and all employees are terminated.Students will be contacted when there is a strategy.What is it you have in mind? What are our legal options? Very expensive hobby.

Answer 22

we need to bind together and seek leagle action towards SSH if anyone wants together and share information or has any valuable info please contact me at [e-mail] or feel free to call me on my cell phone at [phone] i am in sacramento ca.

Answer 23

As an ex-employee effective Sunday, I was totally knock on my butt when I heard the news. I feel really bad for the students who haven't obtained the CFI license. I hope you guys can get your money back from them.

Answer 24

its official im located in jacksonville fl , we have 70 students and all want to be in . dont know for sure what to do class action lawsuit ? if we could just get the loan off our back maybe we could afford to make it ?

Answer 25

Not sure when you posted this but I'm sure you know it's true.