Oregon Airline Company Files Chapter 7 Bankruptcy

Written by CFB Blogger. Posted in Blog

The Evergreen Aviation & Space Museum, located in McMinnville, Oregon, is attempting to set itself apart from the now-defunct company that gave it its start in the little town that is right in the middle of Pinot Noir wine territory. Evergreen Aviation Inc., which had operated a global cargo airline company, has recently filed Chapter 7 bankruptcy. Although the bankruptcy was filed in the U.S. District Court for Delaware, it is thought to be the largest Chapter 7 bankruptcy case involving an Oregon-based business last year. According to an article by Wendy Culverwell in the Portland Business Journal, the founder of Evergreen Aviation, Del Smith, created the museum, which includes a water park, theater and chapel. “Due to the link between the for-profit and nonprofit organizations, Evergreen Aviation’s bankruptcy has resulted in the loss of several aircraft in the museum collection, which became bankruptcy assets,” the article states. As of this posting, the museum remains open and its most prized possession, the Spruce Goose, once briefly flown by Howard Hughes, remains on display. However, the article avers that the nonprofit status of the museum could be impacted by the aviation company’s bankruptcy. The Oregon museum is also facing its own financial challenges, including a six-figure loss listed in its latest IRS filing. The Oregon Department of Justice, which investigated the museum after complaints about an unusual financial transfer from Evergreen Aviation in 2012, has recommended that the IRS review the museum’s tax-exempt status. The state investigation, which took place in March, noted that the museum “functioned largely as an arm of the company rather than an autonomous organization fulfilling its nonprofit mission”, putting its future at risk with the failure of Evergreen Aviation. This was brought about by an unsecured $725,000 loan by the museum to the struggling business. “The findings,” the article maintains, “faulted the museum’s board for failing to put the nonprofit’s welfare ahead of the company’s and documented evidence the company treated museum resources as an Evergreen asset.” Evergreen Aviation has repaid the $725,000 with interest to the museum and a museum spokeswoman said that “the museum is now fully separated from the business”. The attorney general’s findings should “serve as a cautionary tale to nonprofit board executives and particularly to wealthy philanthropists: Keep your for-profit and not-for-profit operations separate.” Your overwhelming debt is a serious matter that you need to deal with now. Filing for Chapter 7 or Chapter 13 personal bankruptcy is complicated. You need a knowledgeable and experienced bankruptcy attorney from Client First Bankruptcy at your side to guide you through every intricate step. Log onto www.clientfirstbankruptcy.com for important and up-to-date information on filing your personal bankruptcy or call us toll-free 800-383-6004 for your free initial consultation. We answer our phones Monday through Friday from 8:30 a.m. – 6:00 p.m. Central Time so you can get answers when you need them.