Kitfox Manufacturer Skystar Files For Bankruptcy
Kitfox aircraft kit manufacturer Skystar Aircraft Corp. has filed for bankruptcy under Chapter 7, EAA reported on Tuesday. According to documents obtained by EAA, the filing took place on Friday, Oct. 14, in Idaho. Those documents show the company's claimed assets totaled about $1.1 million, with liabilities of nearly $1.7 million. Skystar President Frank Miller could not be reached, but the company's bankruptcy attorney, David Kras, told EAA that plans are to liquidate company assets and pay off the creditors. Individuals who paid Skystar for kits or parts that were never delivered may be entitled to file a priority claim, which could give them a better chance to recover at least some portion of their payment, EAA said. "Customers and other non-secured lien holders will receive official notice of the proceedings from the bankruptcy court," Kras said. "That's really the only statement we're prepared to make at this time." More than 4,000 Kitfox kits have been delivered worldwide since the design first appeared in 1984. Since then, the company has been sold twice. The filing came just in time to avoid a new, more stringent law that took effect on Oct. 17, under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. For more information about filing a claim, go to EAA's Web site.