Helicopter Operator Sues America’s Cup Organizers

The financially troubled America’s Cup Organizing Committee is being sued for $310,000 by a flight service company contracted to provide helicopters for America’s Cup television coverage.

A hearing in the breach-of-contract suit has been scheduled for March 30 in San Diego County Superior Court.

E. J. Helicopters of Los Angeles, which filed the suit March 3, contends that the ACOC failed to fulfill a $1.05-million contract signed in February, 1991, and has refused to settle the dispute through arbitration, as required by the contract.

E. J. Helicopters will ask for an order allowing for the immediate attachment of ACOC assets, such as a bank account, said San Diego attorney Charles B. Harris, who is representing the flight service.

The ACOC has struggled with financial shortfalls since its inception three years ago. In August, the group restructured its $6.5-million debt and laid off a third of its employees in an effort to resolve its financial difficulties.

The ACOC was to produce the America’s Cup television coverage, but because of continuing cash-flow problems, the production was taken over in January by a group headed by the foreign challengers.

In a statement released Monday, the ACOC said tha E. J. Helicopters was paid for services rendered during the International America’s Cup Class World Championship last May.

“The responsibility for the production of the America’s Cup Host Broadcast was transferred to America’s Cup Television (ACTV),” the ACOC said. “ACTV successfully negotiated a contract with E. J. Helicopters regarding helicopter usage necessary for the production of the America’s Cup Host Broadcast.”

Live broadcasts of the America’s Cup races are scheduled to begin when the racing resumes Saturday.