Two creditors file objections to Cape's Commander bankruptcy motion

TYLER, Texas -- Two other creditors of Commander Premier Aircraft Corp. have filed objections to block a move by Cape Girardeau officials to have the company's bankruptcy status converted.

The court filings have delayed a hearing scheduled for Tuesday in which a judge was asked to hear the city's case for switching the company's bankruptcy status from Chapter 11 to Chapter 7 -- a move that would allow the sale of Commander's assets to repay company debt.

While no new hearing has been set in a Texas bankruptcy court, city manager Scott Meyer said he expects it to be mid-December.

Commander owes more than $2 million to several creditors, including $800,000 to the city in missed lease payments. But Nyltiak Investments LLC, of Avenleigh, Conn., and Aerodyne Corp., of Burlington, Vt., filed separate motions asking that the city's bankruptcy status conversion motion be dismissed.

Meyer said he wasn't exactly sure why the other creditors would prefer the status stay in Chapter 11, except that it must make more financial sense for those companies.

Still, the city is hoping a judge will side with them, Meyer said.

"We're hopeful to get it to a Chapter 7, get their assets liquidated," Meyer said. "The sooner we get to that point, the sooner we wake up from this nightmare."

Pertinent address:

Tyler, TX

Cape Girardeau Regional Airport, Cape Girardeau, MO