Janice Loyd, trustee for the defunct Quartz Mountain Aerospace company of Altus, appeared in U.S. Bankruptcy Court Monday in Lawton to address questions regarding the proceedings.

Loyd said that lien holders including the City of Altus, First National Bank of Altus and the Oklahoma Industrial Finance Authority will be the first in line to collect payment after the company’s assets are liquidated.

Those being paid next will be investors, employees and contractors.

According to Loyd, a public auction will be held in Altus in March, but the City of Altus retains ownership of the former QMA facilities which were leased to the company.

Any equipment put up for collateral also remains in Altus and any equipment stored at a second facility in Kansas is being brought back to Altus.

Former employees and other creditors have until Feb. 17 to file claims against the company, but what they may be able to recoup is unknown due to the large number of creditors in line before them.

QMA claims $30.4 million in assets including their type certificate for the Model 11-E aircraft supposedly worth $16 million. The Federal Deposit Insurance Corporation has a lien against the type certificate.