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Update: Turbine Airfoil fights to avoid receivership

By - Last modified: February 14, 2011 at 12:20 PM

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A creditor is trying to push Harrisburg-based manufacturer Turbine Airfoil Designs Inc. (TAD) into court-ordered receivership, but the company's top official said today he is trying to avoid that process.

A creditor is trying to push Harrisburg-based manufacturer Turbine Airfoil Designs Inc. (TAD) into court-ordered receivership, but the company's top official said today he is trying to avoid that process.

TAD manufactures parts for turbines used in aircraft and other machines.

Textron Financial Corp., of Rhode Island, said TAD owes it more than $600,000 and has repeatedly defaulted on the loan. TAD also was due to have its power shut off Sept. 1 as a result of unpaid bills, Textron said in a court document.

Textron Financial is the financing arm of Textron Inc., a Rhode Island conglomerate whose products range from Cessna airplanes to lawn mowers. Textron filed a complaint Sept. 3 in the U.S. District Court in Harrisburg.

In receivership, an outside party is put in charge of the property or management of a troubled business. Textron said TAD agreed to liquidate its assets if the debt was not repaid by Sept. 1, either by going into receivership or hiring an auctioneer. But TAD has refused to take either step, Textron said.

A hearing on Textron's motion was scheduled for Sept. 14, but a judge continued deliberation until Sept. 28, TAD Chief Executive Officer John A. Walton said today. Walton said he hopes to keep the company out of receivership.

"We're still working to get a different kind of solution," he said. The company's efforts include looking for investors and talking to government agencies about financing options, he said.

TAD had 170 employees at its peak and about 50 employees before the plant at 1400 N. Cameron St. in Harrisburg was idled a few weeks ago, Walton said. The company was hurt by the recession and problems in the credit markets, he said.

Textron said TAD's debt was guaranteed by Walton and by The Walton Johnson Group Inc. and Chasco Capital Corp., both of Texas.

Calls to The Walton Johnson Group and to TAD's attorney were not returned this morning. Textron attorney Brian Feeney declined to comment.

The facility appeared idle today, with the parking lot empty and both the visitors lobby and an employee entrance dark.

This article was updated to include information provided by Turbine Airfoil CEO John A. Walton

Write to the Editorial Department at editorial@cpbj.com

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