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Aerospace company files for Chapter 7 bankruptcy

A small aerospace company that has had reasonable success in the last five years has shuttered its hangars, according to the bankruptcy court local to the business. Kentucky aerospace enthusiasts may be familiar with XCOR, based in a West Coast state, which has declared Chapter 7 bankruptcy. The company's assets and liabilities have not yet been made public. 

According to the report, XCOR was best known for an ambitious project building a suborbital craft called a Lynx spaceplane, which was purported to be able to take off and land horizontally. This would be tested at the company's new home in Midland, California, after a local development agency signed a $10 million deal with the aerospace company. However, trouble was on the horizon for the innovative company. 

After a subcontract was not renewed this year, money quickly ran out and the acting CEO of the company went on record stating they were actively looking for investors in advance of filing Chapter 7 bankruptcy. No investors materialized, however, but another contractor launched a lawsuit against the company for an estimated $3.6 million debt. The company's management has not released a statement since. 

Obviously, no business owner could foresee the misfortunes that befell XCOR. However, Kentucky residents should consider the fact that in filing for Chapter 7 bankruptcy, the company's ownership was put in a position for the court to reduce or even forgive some or all of their outstanding debts. This will allow the great minds behind a cutting-edge technology company to come back stronger than ever, without the low ceiling of debt grounding them. 

Source: mrt.com, "XCOR files for Chapter 7 bankruptcy", Trevor Hawes, Nov. 9, 2017

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