Commander hearing again continued

A judge in Texas again continued a bankruptcy hearing Tuesday to give more time to Commander Premier Aircraft Corp. to find a buyer to help make the company solvent.

Judge Bill Parker of the U.S. Bankruptcy Eastern District of Texas continued the hearing until Feb. 21, a request that Cape Girardeau officials did not object to, said city manager Scott Meyer.

"We were OK with it," Meyer said. "They are looking at options where the city can gain the most back rent and money, basically."

Meyer said he wouldn't specifically comment on what those option are, but he said they generally involve the company's insistence that they are close to finding a buyer and that would cause a "cash infusion."

The city, which is owed more than $800,000 from the failed aircraft manufacturer, is asking the judge to convert the bankruptcy status from Chapter 11 to Chapter 7, which will force the company's assets to be sold so the city can recoup a portion or all of its losses. Assets remain at the hangar Commander had occupied until it was evicted in October.

"Pushing Chapter 7 is our way of holding their feet to the fire," Meyer said. "That's our leverage to keep them moving forward. But it looks like there are real possibilities here."

The company is thought to be valuable to potential buyers with a Chapter 11 status because approvals from the FAA could be transferred to a new owner. If a Chapter 7 were granted, any buyer of those assets would not have those approvals.

Joel Hartstone of Commander did not return phone calls Tuesday seeking comment.

But if no progress is made by the Feb. 21 hearing in Tyler, Texas -- where the company is headquartered -- the city won't be interested in another continuance, Meyer said.

smoyers@semissourian.com

388-3642

Pertinent address:

Tyler, TX