HomeMy WebLinkAbout1976-03-01 150 AD ORDERi ISO AD
Introduced by Councilor Henderson, March 1, 1976
CITY OF BANGOR
(TITLE.) Orbfr--.-.-------- Notification of Trustee in TransEast Ai Inc.
'wFIREAS, the City Council of the City of Bangor has determined that the City of
Bangor should not Continue t0 commit hundreds of thousands of citizens and tax-
payers dollars to continue to planned the conduct of the Fixed Base Operation in
the present situation orany situation where the City Council, as the representative
of the people, does not have the right and the full discretion to provide Fixed
Base Operation typeservices as the City Council, in its sots judgment, shall deem
proper; and
NI@RBAS, in accordancewith this determination, the City Council of the City of
Baagor haspreviously expressed to its attorneys that its paramount concern and
priority in the matters pending before the Bankruptcy Court pertaining to Trans -East
Air, Inc. is to relieve the City of any and all obligations, duties and responsibilities_
is conduct the Fixed Base Operation at Bangor International Airport under the aegla of sj^'
either the Court or the Trustee In a so-called "caretaker" capacity, or otherwise; and
MMS, the City Council previously has instructed the City's attorneys to take all
conceivable steps Co prevent the City from being Compelled by the Court to continue
the conduct of the Fixed Base Operation under the aegis of the Court or the Trustee.
and
GkO INSS, the City Council has also instructed its attorneys, if possible, and without
Jeopardizing the paramount c and priority Heretofore expressed, to obtain
removal
val of the prohibition by the concern
of the City conducting a Fixed Base,operation
as it, in its Bole judgment, shalt see fit, and without being held accountable to
the. Court fortauch. operation, with the consequences that:
1. The City would have undisputed. title to accounts
receivable generated by its operation
2. The Trustee and depositors Trust Company, In
particular, would net have any purported basis to
charge the City. and its offir La Ls, employees add
representatives with misappropriation of Fixed
Base Operation funds, fraud, conspiracy, falsification
of business records or interfere with the exercise
of business judgment or otherwise continue their practice
of baseless, spurious and libelous charges
3. The status of the profits and lasses of the continued
Fired Mae Operation would be clarified
WHEREAS, the City Council, through its attorneys, has previous Ly Informed the
Bankruptcy Court that the City is an longer willing to conduct the Fixed Base
Operation at Bangor International Airport under the sages of the Coast; and
WIEMS, in response to the City's expression of Intent to cease conduct of the
Fixed Base Operation under the sages of the Court, the Court has entered a series
of Orders compelling or permittin the City to continue as the Fixed Mae Operator
until the Court would have reached its decision on the City's Complaint for
relief of stay (the date of such decision being uncertain) which. could have
resulted in the City's continued conduct of the Fined Base Operation under the
Renee of the Court for weeks, or even months; and
WHEREAS, the Court Me already, stated In its Order dated February 26, 1976 that the
relief requested in the City's Complaint for Relief from Stay is beyond the power
of the Court to grant, and therefore the relief sought in said Complaint would only
come after appeal of the Court's expressed position; and
WHEREAS, in the Order dated February 9, 1976 the Court indicated that the relief
requested by the City's Complaint would not be granted "prior to the completion of
the trial currently in progress", which trial will probably not be completed and a
decision rendered thereon, for several menthe; and
WHEREAS, in the Order dated February 26, 1976 the Court indicated that it Is
disposed to resolve the "principal issues" prior to the 'collateral litigation"
(such As the City's Complaint for Relief from Stay),
NOW, THEREFORE, By the City Council of the City of Bangor
BE: IT ORDERS THAT the prior Btateueots to the Court indicating that the City
does not wish to conduct the Fixed Base Operation at Bangor international Airport
under the aegis of the Court be reaffirmed, and in accordance therewith, the City
Hanger is hereby directed to notify Merge W. Kurt, Jr., Trustee, that the City
Of Bangor elects net t0 continue the Conduct of the Fixed Base Operation at Bangor
International Airport, and
EE TT FURTHER ORDERED, THAT the City Manger be directed to take all measures
necessary to safely secure any and all property of the estate of. the Debtor, Trans -
East A1[, Inc.
7
IN CITY CWNCIL
March. 1, 1976
Special Meeting
Passed by the following
yes'and -n vote: Councilors
voting yea: eigney, Hrountes,
Finnigan, Gass., Henderson,
Mooney, Soucyandsculas.
Councilor Ballou absent
CISI CLEW