More Legal Action Against Epic

Gemini Sparkle

Key Takeaways:

  • Epic Air has closed, leading to mounting legal battles over its remnants, with an estimated $15 million owed to builders for unfinished aircraft parts, and no funds to cover these obligations.
  • Company owner Doug King is seeking to relocate the Chapter 11 bankruptcy proceedings from Nevada to Bend, Oregon, arguing that all meaningful assets and witnesses are located there.
  • Filings include affidavits from former company officers alleging serious misconduct by principals and describing a chaotic financial environment under the exclusive control of CEO Rick Schrameck.
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The legal battles over the remnants of Epic Air are mounting and a picture of what went on behind the slick scale models and almost-instant prototypes churned out by the company is getting clearer with each filing. As AVweb told you in July and August the company is closed and there are about 12 unfinished builders’ aircraft in the locked building at the Bend, Ore., airport. The latest filing was made by owner Doug King, and documents obtained by AVweb make serious allegations about the conduct of company principals. In an affadavit sworn by Chief Financial Officer David Clark, he estimates Epic owes builders about $15 million in parts and has no money to meet those obligations.

King’s main motion is to have the Chapter 11 bankruptcy proceedings moved from Nevada (where the parent company, Aircraft Investor Resources, is formally registered) to Bend, arguing that’s where all the meaningful assets of the company are located, along with all the witnesses who might be needed to testify. But he includes affidavits from General Manager David Hice and Clark, who describe a chaotic financial environment over which CEO Rick Schrameck ruled exclusively.

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