Bankrupt Taylorcraft Aviation LLC lost protection from its creditors Nov. 3 when U.S. Bankruptcy Judge Richard S. Schmidt dismissed its case because the company did not have legal counsel, which is required when filing Chapter 11.
The judge made the decision after one of the company’s creditors objected to the Chapter 11 filing claiming that debtor companies are required to have legal counsel in bankruptcy proceedings. Because of the judge’s decision, the company is open to property seizures and sheriff’s auctions as a means for creditors to regain their losses.
The Brownsville, Texas-based company filed for bankruptcy Oct. 13 without an attorney, listing 23 creditors and $847,400 in debt. Less than a week before the filing Taylorcraft President Harry Ingram stated that he was expecting money to be coming in to the indebted company and that the financial troubles would be mitigated. The money never materialized and Ingram stopped returning calls and emails from General Aviation News. (For a full account of Taylorcraft’s woes, see the Oct. 6, Oct. 20 and Nov. 3 issues or go online to GeneralAviationNews.com).
One of the largest creditors is the City of Brownsville with $108,000 owed for back rent for city-owned hangar space at Brownsville-South Padre Island International Airport. As this issue was going to press, the city was in the middle of eviction proceedings.
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