Dodson Aviation, former owner of N4610 the rent-a-coup plane, was apparently having financial difficulties, according to Lender Liability News:
"2 Million Cap Doesn't Apply"
Lender Liability News (10/31/03) Vol. 16, No. 12,
U.S. District Judge Kathryn H. Vratil has ruled that Dodson Aviation is liable for the full amount of its loan from GE Capital. GE Capital sued Dodson Aviation and its owners for breach of contract after Dodson failed to make three consecutive monthly payments on its loan for a $2 million Hawker aircraft. The lender asked to recover $2.75 million from the owners of Dodson Aviation, which filed for bankruptcy shortly after the suit was filed, and argued that the owners of the company were personally liable for the amount of the loan's outstanding balance. Dodson Aviation's owners argued that they were liable for only $2 million, or the credit cap in the initial loan agreement. The judge ruled against Dodson Aviation's owners, saying they must pay the full $2.75 million owed to GE Capital as laid out in the guaranty and security agreement the company had with the lender.
MEANWHILE, Shameless Agitator has named me the week's Shameless Agitator fo my coverage of N4610.