PORTLAND — The owner of Oxford Aviation has agreed not to contest a dismissal of his Chapter 13 bankruptcy case, possibly opening the way for more than 80 creditors to claim payment. 

Horowitz’s attorney, David Johnson, told Judge Peter Cary in federal bankruptcy court Wednesday that his client would not contest a motion to dismiss the case filed by Trustee Peter Fessenden in early February.

“We have regrettably and somewhat unhappily agreed to consent to a dismissal of this case,” Johnson told the court.

In his Feb. 11 motion, Fessenden said that, despite the fact that Horowitz had made no payments since filing the case, he also had no proof of insurance on the Oxford Aviation property, had not provided Fessenden with required monthly business operation reports and has apparently been violating Maine Department of Environmental Protection standards regarding hazardous waste.

A judgment that accepts dismissal of the case is expected to be filed by Johnson with the court by March 19. He declined to comment on the case following Wenesday’s hearing.

If signed by Judge Carey, the judgment is expected to authorize the agreement reached between Horowitz and Oxford County in January, which gives Horowitz until the end of March to find a new tenant to take over his lease for the 40,000-square-foot facility he leases from the county at the Oxford County Regional Airport in Oxford.


Oxford Aviation, founded in 1989, repaints and refurbishes aircraft. It has not taken on any new work since Horowitz filed for bankruptcy.

Horowitz filed for Chapter 13 bankruptcy in November, after transferring the assets of Oxford Aviation to himself for $1. Chapter 13 bankruptcy allows a debtor to retain some income and to repay debts over a period of years.

At the time, his lawyers said the move was an effort to stave off the county’s eviction lawsuit.

Horowitz and Oxford County commissioners came up with the agreement to find a new tenant or risk Horowitz’s eviction in South Paris District Court in January, but the deal still must be signed by the bankruptcy court.

On Wednesday, Johnson said Horowitz and his broker, Greg Caswell, were still looking at potential takers for the Oxford Aviation lease and there would be no downside if they were able to find someone to take it over.

“I’m not saying there are great prospects, but there are still one or two people who are still kicking the tires,” Johnson said.

Oxford Aviation still faces multiple lawsuits, including one from Community Concepts that claims it defaulted on a loan made in 1996 and is demanding possession of more than $60,000 in property and equipment as compensation.

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