City Begins Eviction Proceedings

If you saw a greater number of black cats than usual near the Brownsville (TX)-South Padre Island International Airport this past Friday the 13th... it was likely a portent of the doom that has started to befall Taylorcraft Aviation. The struggling light sport aircraft manufacturer filed for Chapter 11 bankruptcy on October 13.

The Brownsville Herald reports the company lists 23 creditors owed a total of $847,400, with the largest single creditor being the city of Brownsville at $108,000 owed in bank rent.

Alas, the news was not entirely unexpected. As Aero-News reported last month, company president Harry Ingram was hit with over a quarter million dollars in judgments and liens. The company lost its corporate charter in 2004 because of a tax lien -- and came to Brownsville the following year.

In a glimmer of good news for Taylorcraft, that lien appears to have been satisfied -- with the Texas state comptroller's office listing the company as "in good standing." Ingram told the Herald he filed with the state one day before the Chapter 11 filing.

"We want to come to terms with the city," said Ingram, who for the moment is representing himself. "We still want to stay."

But that's probably not possible, said Brownsville city attorney Jim Goza. "He can’t really avoid moving out," Goza said. "At this point, the outcome is inevitable."

There are several questions surrounding the documents filed with the US Bankruptcy Court. For one, Ingram's name does not appear on them anywhere, despite being listed as company president on all past company documents. Ingram's wife, Darlene -- manager of the company -- is the sole name on the latest paperwork.

The Herald also reports a discrepancy in the amount owed to one creditor, as shown on the filing. Larry Jensen is listed in the court papers as a creditor who is owed $45,000 by the company -- despite the fact Jensen was awarded a $138,438 default judgement against Ingram and Taylorcraft in March.

That brings Ingram's total debt to at least $940,838.

FMI: www.taylorcraft.com