Janice Loyd, trustee for the defunct Quartz Mountain Aerospace company of Altus, appeared in U.S. Bankruptcy Court in late December 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 would 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.

A public auction has been set for March 26 & 27 in Altus at the former business facility of debtor QMA. The auction will begin each day at 9 a.m. and will be conducted by Starman Bros. Auctions, Inc.

Former employees and other creditors still 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 11E aircraft supposedly worth $16 million. The Federal Deposit Insurance Corporation has a lien against the type certificate.

In court documents filed Feb. 6, the Trustees are proposing to sell 13 airplanes, including QMA’s “Show Pony” the Luscombe 11A (1948) serial #11-180, and one that had a lien against it filed on behalf of the Altus/Southwest Area Economic Development Corporation.

Also being sold will be a 2001 Chevrolet pickup, a 2004 Chevrolet pickup, a 2005 Chevrolet Explorer, a 2007 Kawasaki Mule utility vehicle, and a 2003 Journey by Pace American utility/cargo trailer.

Proceeds from the sale of the airplanes will be paid on a pro-rated basis first to administrative expenses approved by the court including auctioneer’s fees and expenses, Trustee’s fees and expenses, attorney for Trustee fees and expenses, Trustee’s accountant fees and expenses, and other actual, necessary costs and expenses of preserving the estate. The net remaining will be distributed to secured creditors with valid, perfected liens on the airplanes. To the extent that proceeds exceed the administrative and secured claims, the remainder of the proceeds will be distributed to creditors in order of priority.