ALTUS — An aircraft maker that received millions of dollars in state aid has fired most of its employees and is being sued for defaulting on more than $450,000 in loans.
Altus-based First National Bank is seeking foreclosure of Quartz Mountain Aerospace. It wants the company to sell equipment it used as collateral for the loans.
The company laid off most its employees in November, just months after receiving its production certificate from the Federal Aviation Administration for its trademark four-seater, the Model 11E.
About a dozen of the fired employees have filed with the Oklahoma Department of Labor, claiming their insurance premiums and other wage garnishments that were taken from their checks were not passed on to the proper authorities.
Company executives have said they expect to secure a $120 million bond package, in which case the cut employees would get their money due and lenders would begin to see regular payments again.
Catherine Coke, city attorney in Altus, said the city will continue to be patient as it awaits repayment of the loans it awarded to Quartz Mountain Aerospace, as well as other incentives delivered to the company in the name of job creation.
Dennis Vernon, a vice president at First National Bank in Altus, said the bank invested in Quartz Mountain Aerospace "in the spirit of economic development and public support.”
Letter just now sent to the Altus Times and the Mayor of Altus...
Good Afternoon...
When word first reached Altus that Luscombe Aircraft had plans to move into town, I had done a bit of research upon them. My findings were all in the negative and results were sent to the Altus Times and the City Council. My concern was, Luscombe would close and file for bankruptcy leaving all of the investors including the City, holding onto a white elephant. (Luscombe Aircraft is noted for doing just that.) I was assured this would never happen and that this would be a boom for Altus.
Now my question/s is, if I can perform a quick research on Luscombe, why couldn't the City Council have done the same? Also, about how much will have the City and other investors have lost? Could this subject matter have been foreseen many months ago, hence the recent raise and extension of taxes having taken place? You must admit, this doesn't look very good for all the powers that be.
Sounds like a 1,2 punch....expensive development of a new aircraft + market crash in aviation. (worst market in 40 years)
ReplyDeleteThat is Aviation....timing is everything. Best thing is to moth-ball until the market recovers so all that investment is not completely wasted. I wouldn't kill the goose until I am sure there is no more golden eggs coming out.
That said the Luscombe brand is a niche market. It has die-hard fans but I don't hear the Aerospace community raving about it. I would expect a very long payback.
Fraud to the Dept of labor....now that is something else and would require a leadership change.
btw I am an Okie from around Enid way and I have been in aviation (Cessna, Learjet, Boeing, Bell Helicopter) for 10 years. In that time I have been laid off 4 times.
Welcome to Aerospace!
nvm.....goose...is ...cooked
ReplyDeleteI mis-read the date of the original post...bad deal all around.