A U.S. bankruptcy court has rejected new financing for Zetta Jet Pte. Ltd. and the company will cease operations Thursday, according to media reports.

Aviation International News reported on its website that Zetta will turn over its air operator’s certificate to the Federal Aviation Administration.

Zetta Jet, headquartered in Singapore, has its charter sales and operations center at the Hollywood Burbank Airport in Burbank. The company filed for Chapter 11 bankruptcy in September.

The aircraft charter company was set to receive $8.5 million from Scout Aviation II LLC to pay for aircraft usage, fuel, employee wages and other obligations. The bankruptcy court denied that financing, AIN reported.

The publication also said that bankruptcy trustee Jonathan King asked the court for a change from Chapter 11 proceedings to Chapter 7 proceedings, allowing for assets to be sold to pay creditors.

The bankruptcy filing came as a result of discovering that a former managing director of Zetta had allegedly misappropriated funds and committed other fraudulent activities. A lawsuit was filed by Zetta against the executive in U.S. District Court for the Central District of California.