TAYLORCRAFT REACHES AGREEMENT WITH CITY

The Taylorcraft saga continues in Texas as reported in the EAA eHotline.
Bankrupt aircraft manufacturer Taylorcraft Aviation LLC has reached an agreement with the City of Brownsville, Texas, allowing it to remain in city-owned hangar facilities on the Brownsville-South Padre Island International Airport so long as it keeps up with monthly building lease payments. According to the Brownsville Herald, Taylorcraft President Harry Ingram must pay the city $15,000 monthly in a cashier's check, with the full amount owed - in excess of $100,000 - to be paid before July 1, 2007. If he defaults, Ingram would be immediately evicted. The company filed Chapter 11 bankruptcy protection on October 13, listing 23 creditors and $847,400 in debt, but that was thrown out November 3 by U.S. Bankruptcy Judge Richard S. Schmidt when he agreed with one of the creditors who objected that Taylorcraft had no legal counsel as required in bankruptcy proceedings. The agreement with the city halted eviction proceedings.