McKinney Aerospace closes up shop

 - September 13, 2006, 11:53 AM

McKinney Aerospace, apparently struggling with financial problems, closed its doors in July, putting some 70 employees out of work. The refurbishment and avionics upgrade provider had been a resident at Collin County Regional Airport north of Dallas since opening its doors.

The company was purchased by Aeros Aviation partners Andrew Eros and Randy Haler in March last year, at which time Eros, as McKinney president, expressed the intent to reduce the cycle time for modification and interior refurbishment. The process, he said, would bring an airplane in for several days to evaluate and define the new interior and any modifications, and then allow the airplane to return to service while the interior components were being built.

Recent court records show that Global Aircraft Service, a fuel systems specialist at Addison Airport in Addison, Texas, won a judgment in the amount of $47,400 against McKinney on July 3 when McKinney failed to answer the suit.

Greg Katonica, president and owner of Global Aircraft, said an earlier agreement with McKinney on a payment schedule had fallen through, and he added, “We’ve still not been paid.”

Global Aircraft attorney Roger Yale noted that McKinney has already sold assets from its equipment inventory to independent completion center West Star of Grand Junction, Colo., for approximately $350,000. Yale said when he asked McKinney attorney Jerry Alcorn about the status of those funds, Alcorn said all but $35,000 had been distributed to McKinney. Yale filed to halt any further disbursements and said a judge locked down the remaining money pending a hearing on August 24.

In a separate legal action, Boyington Capital Group of Plano, Texas, was granted a court order giving it access to the Hawker 125 it had sent to Mc-Kinney for refurbishment and overhaul work, as well any related records. But according to Boyington Capitol Group attorney Kevin Good, attempts to have the order enforced were unsuccessful, prompting the company to file a suit against McKinney, seeking damages in the amount of $258,000. Good has also filed a suit against Eros, Haler and their attorney, claiming, among other things, an improper disbursement of funds in trust.

Attempts to contact Eros or other principals at Aeros Aviation were unsuccessful.