Beaver Island’s main airline files for bankruptcy after fatal crash lawsuit

The aviation company serving Beaver Island has filed for bankruptcy, citing a wrongful death lawsuit stemming from a fatal plane crash four years ago.

McPhillips Flying Service Inc., doing business as Island Airways and Welke Aviation, filed for Chapter 11 bankruptcy protection yesterday in the U.S. Bankruptcy Court for the Western District of Michigan. The company filed under Subchapter V of the U.S. Bankruptcy Code, which helps small businesses file more efficiently by reducing time and costs.

Angela LeFevre-Welke, president of Island Airways, said in court filings that the bankruptcy stems from a 2022 lawsuit alleging negligence by the 80-year-old company led to the fatal crash…

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