Great Plains Added to Debt after Bankruptcy, Court Told

Great Plains Airlines Holding Co. and its operating units amassed unpaid debts totaling $786,928 since filing for bankruptcy, according to documents filed last week with the bankruptcy court in Tulsa.

All the debts to the 72 listed entities were incurred in 2004 after the company sought to reorganize under protection of Chapter 11 provisions Jan. 23, 2004. The bankruptcy was changed from reorganization to liquidation March 11, 2005.

David A. Johnson, chief executive officer, said the listed debts did not include $43,200 in a disputed claims from Wings Aircraft Inc. for unpaid aircraft lease payments after the bankruptcy was filed.

The court was told the account was the "final report and schedule of post-petition debts."

Trustee Pat Malloy III said "there is some chance" that those debts could be paid.

"No one likes to see" debts of that amount after a company has filed for bankruptcy, Malloy said. "It's not a good thing."

Malloy is holding several thousand dollars from the sale of parts and other Great Plains property that is the subject of a dispute with MidAmerica Airport near St. Louis, which states it has a previous claim on the parts.

Malloy also has filed a lawsuit against Pratt & Whitney of Canada claiming the airline had excessive costs because of faulty engines on its planes. And he is suing eight former officers and directors of the airline in Tulsa County District Court for legal negligence.

Included in the Nov. 8 court filing were $105,477 to seven airlines -American, Continental, Delta, Frontier, Northwest, Southwest and United -which Johnson said he believes represents debts originating earlier and should not be included in the list. They ranged from $81.21 for Frontier Airlines to $87,311 owed Delta, the second largest amount owned.

The largest creditor is the Tulsa Airports Improvement Trust at $270,998, which was listed as an administrative claim with an additional $56,276 listed in the "vendor" category.

The Tulsa trust is a defendant in a lawsuit over financing for Great Plains by the Bank of Oklahoma through another city authority.

Another $225,000 is shown owed to three shareholders - Tammie Maloney, Steve Berlin and Sherman Smith - who each made $75,000 loans to the company after bankruptcy proceedings begun.

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