A federal bankruptcy judge has delayed the bankruptcy hearing of airplane manufacturer Commander for the fourth time. The failed airplane manufacturer owes Cape Girardeau more than $800,000 in lease obligations. The hangar they use is a city owned unit at the regional airport.
US bankruptcy court judge, Bill Parker has extended Commander Premier Aircraft Corporation until June 19th to reorganize with the party interested in taking the company out of bankruptcy. The unnamed group of investors has announced it has intentions of buying the failed airplane manufacturer which means the city will have a chance of recouping losses.
Recently, city officials have filed a motion with the bankruptcy court asking to force the company into converting its Chapter 11 bankruptcy into a Chapter 7 bankruptcy. They believed that they would have a better chance of recouping more by selling off the assets of Commander.
An attorney, working for the city, has been pushing the bankruptcy attorney for Commander to put together a timeline. When the judge allowed Commander more time, city officials became upset because this has been going on for seven years since the airplane manufacturer relocated to Cape Girardeau and leased their 52,000 square foot airplane hangar. According to the city, the company never manufactured a single plane, nor did it hire any employees. The company announced it was filing bankruptcy and stopped making lease payments in 2007.
It’ll be interesting to see if the company will be able to exit bankruptcy under new ownership and start building planes again.