Texas objects to Emivest sale
The Texas comptroller has objected to the sale of Emivest Aerospace, the former Swearingen firm that builds the SJ30 business jet in San Antonio, Texas, because of failure to pay back taxes. The firm still owes $836,000, and a payment of $65,000 on that amount is past due.
Greg Abbott, the attorney general of Texas, has asked the U.S. Bankruptcy Court for the District of Delaware to delay the sale to a “mystery buyer.”
The court has set Feb. 11 for a hearing on the request to delay the sale.
“Attempts to obtain more detailed information from debtor's counsel have been ignored, with the counsel involved in negotiating and drafting the sale terms refusing to respond to telephone calls or e-mails requesting to discuss the proposed sale,” Abbott said in a filing. “Due process is being denied. The Texas Comptroller, operating on limited state funds in a time of severe budget constraints, should not be required to send counsel at taxpayer expense to a distant forum in order to obtain adequate information about a sale of assets subject to the Texas Comptroller's tax lien and claims.” Emivest has headquarters in Dubai, United Arab Emirates.
If the sale is not just delayed but later denied, the firm may face Chapter 7 bankruptcy proceedings. Approximately $700 million has been spent to develop the jet, according to court papers filed by Emivest.
January 31, 2011