Air/Space America Is Permanently Grounded in Bankruptcy Court

Air/Space America, the financially troubled organization that unsuccessfully attempted to stage an international air show at Brown Field in May, began liquidation proceedings Monday in federal Bankruptcy Court in San Diego.

The nonprofit group, founded by former U.S. Congressman Bob Wilson, listed just $12,400 in assets and an unknown total of debts owed to more than 300 unsecured creditors. It also owes at least $83,000 in back taxes, according to the filing.

Air/Space America’s plans for an air show and international aerospace industry trade exposition fell apart in late April, just days before it was scheduled to open May 5. Although the bankruptcy filing was not made until Monday, Air/Space America’s board of directors voted to enter bankruptcy at a May 1 board meeting, according to the filing.

The cancellation of the two-week show occurred shortly after several suppliers told The Times they had stopped working for the show’s organizers because they were not being paid. Still, the cancellation, announced April 18, caught exhibitors, suppliers and performers by surprise.

According to Monday’s sketchy filing, Air/Space America owes $83,000 in federal payroll and state property taxes. However, the filing does not describe debts owed to more than 300 unsecured creditors, a group that includes former Air/Space America employees and officials, suppliers, performers, industry trade show exhibitors and the city of San Diego.

Air/Space America’s meager assets include office furniture, a non-working airplane and building materials and supplies that stored at Brown Field.

The organization’s financial troubles stemmed from a popular but money-losing initial air show and trade exposition in 1988 that saddled the group with a $2.7-million debt. After that show, the city filed suit and won a judgment for $30,033.78. At the same time, a number of Air/Space America creditors sued the group and won judgments of more than $1 million.

Monday’s bankruptcy filing shows that Air/Space America has been sued by nearly 20 creditors, including the city, which is seeking $250,000 in rent and the cost of repairs to the airfield that were supposed to have been made after the 1988 show.

In eight of the lawsuits, which were filed at various courts in the state, creditors have won judgments against the group, according to the filing.

Creditors listed in Monday’s filing include companies that provided food services, ground preparation, security, trash collection, telephone services and accounting work. The list also includes some Air/Space America employees and a number of the organization’s board members.

Wilson, the former U.S. congressman, served as Air/Space America’s chairman. Former General Dynamics executive William Patterson served as its most recent president. The board of directors included: Herbert G. Klein, Claire Burgener, Judson Grosvenor, Lionel Van Deerlin, David Wilson, Leon Parma, Harriet Smith, Charles Kerch and Frank Owen.