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Quartz Mountain Aerospace files for Chapter 7 bankruptcy

The Journal Record
November 3, 2009, Marie Price

Oklahoma CITY – Quartz Mountain Aerospace, whose loan defaults helped take down an Altus bank earlier this year, has filed for Chapter 7 bankruptcy, listing $30.38 million in assets and $16 million in liabilities.

The largest of its listed assets is $16 million for an aircraft specification certificate from the Federal Aviation Administration for an aircraft.

Among creditors holding $7.8 million in secured claims, Quartz Mountain listed at least three related to the First State Bank of Altus, which regulators shut down earlier this year. It has since reopened under a new owner.

The creditor listing of Quartz Mountain, formerly Luscombe Aircraft Corp., includes a claim for $2.25 million from First State Bank, which was apparently secured by two aircraft and other property; a claim of $2.15 million from First State Bank Development, with several types of property subject to lien; and a claim of $1.5 million for FSB Development Capital LLC, with three aircraft subject to lien.

The filing also outlined a claim of $1.13 million from the Oklahoma Industrial Finance Authority.

Quartz Mountain, which received millions of dollars in state tax credits and incentives, also listed $1.3 million in unsecured priority claims and almost $6.9 million in unsecured nonpriority claims.

Its unsecured priority claims include $35,000 in withholding taxes owed to the Oklahoma Tax Commission and $108,000 in payroll taxes owed to the Internal Revenue Service.

The company said it wants to liquidate assets to pay off creditors, including local banks, the city of Altus, the Oklahoma Industrial Finance Authority and the Oklahoma Tax Commission.

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