New Bid Made for Security Aviation; Bankruptcy

It appears a bidding war is starting to buy Security Aviation, the Anchorage air charter business that made news last year for its jets, rocket launchers and big spending.

Joe Kapper, whose stepfather started the company in 1985, had offered to buy it in a bankruptcy sale for $3 million. That's $5 million less than he sold it for in 2005.

On Tuesday, the day before the sale was to be finalized in court, two Anchorage men topped that with an offer of $3.25 million, attorney Gary Spraker, representing the bankruptcy estate, told U.S. Bankruptcy Judge Donald MacDonald at a hearing Wednesday.

The new partners are Randy Dewar and Daniel Owen, who said he's been in the aviation business since the early 1980s but didn't want to comment about the offer. Dewar didn't return a call.

MacDonald agreed to put off a decision about the sale until at least Monday.

After Wednesday's short court hearing, Kapper said he's still in the running, but stopped short of saying he planned to up his offer.

"We're not finished yet," he said.

One complicating factor is the need for the Federal Aviation Administration to approve the transfer of Security's operational permit, Spraker said.

Kapper is running Security Aviation for the bankruptcy trustees, serving as president and chief executive officer.

He said his initial offer was far below what attorney Mark Avery paid his family because of the company's "diminished value" after Avery's year-plus at the helm. Plus, the bankruptcy trustee has said, Avery overpaid, offering $1 million more than Kapper was asking.

Security's reputation was tarnished in February 2006 when the company and a principal were indicted on federal charges of illegally possessing two rocket launchers. A jury acquitted them in May.

While Security Aviation remained in business, it wasn't flying as much as it used to. And the federal investigation continued.

Avery filed for bankruptcy in October. A separate bankruptcy case was filed for Security in December.

AVERY PLEA

In March, Avery pleaded guilty to 15 felony counts, admitting his role in a scheme to defraud an elderly widow's trust fund of more than $52 million. He used the money to buy Security and start or acquire a string of other companies. He furnished them with executive jets, military jets, helicopters, boats and more.

Security Aviation is being sold with six planes, four Cessnas and two Pipers. Separately, the bankruptcy trustees are considering offers for other aircraft owned by Security or related entities, including three vintage World War II planes and a fleet of Czech-built L-39 fighter jets.

Security Aviation also is shedding two contracts, one for a hangar that was costing $30,000 a month, and another to provide air ambulance service to the Yukon-Kuskokwim Health Corp. Another businessman is taking over the medevac service.

The company is now back to its roots as an air charter known as safe and reliable, Kapper said. But it is doing less business than pre-Avery. Flight hours are down. Torn relationships with clients need to be repaired, he said.

"We've got a lot of work in front of us," Kapper said.

Daily News reporter Lisa Demer can be reached at and 257-4390.

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