Airport Contractor Files For Bankruptcy

WINSTON-SALEM, N.C. --

The airport contractor hired to finish the runway project at Smith Reynolds Airport filed for bankruptcy protection on Wednesday.

The company, Mainline, is a general contractor that was hired to work on a safety runway extension project at the airport in Winston-Salem.

Mainline has been under investigation by the Federal Aviation Administration and North Carolina Department of Transportation (DOT) after sub-contractors filed complaints against the firm.

The Smith Reynolds project was funded by the federal government, but subcontractors who were hired by Mainline to haul away dirt said they never received full payments in a practice known as "slow pay, no pay."

The federal government funded the Smith Reynolds project, giving the money to the North Carolina DOT. The DOT, in turn, passed the money to the airport, which pays the general contractor.

Mainline's bankruptcy filing raises concerns whether the subcontractors will be able to receive their payments.

The DOT is also investigating other similar allegations against the firm at another state project on which Mainline was working.

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