Christmas came early for Taylorcraft Aviation LCC when city officials in Brownsville, Texas, decided Nov. 28 not to evict the company from its rental space at the Brownsville-South Padre Island International Airport.
City officials started eviction proceedings in late September because Taylorcraft owed more than $108,000 in back rent and utility bills. Originally the city gave the company until Oct. 12 to be out of the premises.
On Oct. 10 Taylorcraft owner Harry Ingram told General Aviation News that he had been given a notice to vacate but did not intend to leave, stating that he expected to have some money coming in shortly.
According to an article in The Brownsville Herald, Taylorcraft will get one more chance to make good on the debt. Ingram has agreed to pay the city $15,000 a month in cashier’s checks. Part of the money will be used to pay down the debt. The full amount needs to be paid before July 1, 2007. City officials noted that if Ingram defaults on the payments, eviction would begin immediately.
Taylorcraft Aviation moved to Brownsville from LaGrange, Texas, in 2005, lured in part by money offered by the Greater Brownsville Incentives Corp. (GBIC).
On Oct. 3, the GBIC gave Taylorcraft $47,000. That money went to the First National Bank to pay off an $85,000 loan the bank gave to Taylorcraft.
When Ingram bought the company in 2003 he stated that his intent was to restart the manufacturing line, which would include a Light Sport Aircraft version of the classic airplane, and to supply replacement parts for legacy aircraft. According to the FAA, Taylorcraft does not have the required permits to do either.
Plagued with financial problems, Taylorcraft filed for bankruptcy Oct. 13 without an attorney, listing 23 creditors and $847,400 in debt. On Nov. 3 the company lost protection from its creditors 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.
For more information: