A foreclosure auction for the Evergreen Space Museum and Wings & Waves Waterpark, originally scheduled for 10 a.m. Monday on the courthouse steps, has been postponed until 10 a.m. the Monday of Dec. 21.
Hoffman Construction Company of Oregon, which erected all of the buildings on the museum’s Highway 18 campus, following the museum’s signature look, filed for foreclosure on the space museum and water park last year. It is seeking their sale at auction in a bid to recoup $1.9 million still owed on the construction by the Michael King Smith Foundation, owner of the land and buildings associated with those elements.
Foundation board member Jay Goffman, a prominent New York bankruptcy lawyer, told the News-Register that Hoffman had agreed to postpone the sale for three weeks to give the parties more time to seek resolution short of a sale.
Construction company officials could not be reached, but Goffman expressed his gratitude, saying that “provides some additional time to try to resolve matters on a consensual basis.” In the interim, he said, “We will continue to work towards a consensual solution in the best interest of all parties.”
Hoffman won the judgment last year in Yamhill County Circuit Court, but held off initiating foreclosure action for several months while the parties tried to negotiate a settlement. Frustrated at the lack of progress, it finally filed notice that it planned to proceed with the auction.
The foundation is governed by a three-member-board consisting of Goffman, head of corporate restructuring for New York’s Skadden, Arps, Slate, Meagher & Flom LLP, billed as the world’s largest law firm; certified public accountant Lisa Anderson, president of Evergreen Vintage Aircraft, which previously owned some of the planes displayed at the space museum’s air museum twin; and Jimmy Ray, personal representative of the estate of Evergreen’s late corporate and museum founder Del E. Smith. In addition to owing the construction company almost $2 million, the foundation reportedly owes Goffman’s 2,000-member law firm $5 million.
Ownership of the museum’s land and buildings was divided between the Evergreen Vintage Aircraft, which owned the air museum building and theater, along with some aircraft, and the Michael King Smith Foundation, which owns the space museum and waterpark.
However, Evergreen Vintage Aircraft is now in bankruptcy in U.S. District Court in Portland. Last summer, it won bankruptcy court approval to sell its museum holdings to a private benefactor, who agreed to favorable terms on a long-term lease for their continued operation.
The museum itself owns its signature display, the Spruce Goose wooden airplane, and many of its exhibits. Others are on loan from various agencies, including the U.S. military.
The museum was founded by Smith, who also founded Evergreen International Aviation and an array of subsidiaries and holding companies. From its base in McMinnville, the corporation came to include international air transport, helicopter services, ground logistics, agricultural and airplane storage and repair arms.
Since the collapse of Evergreen International Aviation and most of its subsidiaries in 2013-14, and Smith’s subsequent death, the museum has struggled. That’s partly because the entities that own its buildings, and many of its exhibits, were left mired in debt.
However, the museum has been steadily working its way through those obstructions.
It hired a new interim director in September, and says that it is doing well. In early November, it held the first of what is intended to become an annual fund-raising gala, and it is planning to unveil several new programs for visitors over the coming months.
Source: http://newsregister.com
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