WPR Report: City of Superior, Douglas Co. Losing Hope of Being Reimbursed by Kestrel

Ryan Juntti
Updated: August 06, 2019 06:25 PM

For years, the city of Superior and Douglas County have been hopeful that bankrupt Kestrel Aircraft would reimburse them over $2 million combined that they are owed. Now they are reportedly losing hope they will ever see that money. 


Back in 2012, the city of Superior gave the company $2.6 million and the county gave $500,000 when Kestrel pledged to create 600 jobs in the city, but that never happened.

Superior Mayor Jim Paine told Wisconsin Public Radio, "We gave them money in the hopes that they would (create jobs). They used that money. They invested in some things. I’m sure they intended to build airplanes, but (it) didn’t work out." 

Court documents say as of last fall, Kestrel still owed the city $1.7 million and Douglas County $479,000.

Paine told Wisconsin Public Radio that the city resolved its debt from the loan awarded to Kestrel by paying it off through the city's capital improvement fund.

Court documents say Kestrel and its its parent company ONE Aviation Corp. filed for bankruptcy last October. The documents say at the time of filing that Kestrel owed more than $198 million total.

WDIO News reached out to Kestrel but have not yet heard back. CEO Alan Klapmeier told Aviation International News that the company believes it will successfully emerge from bankruptcy.


Ryan Juntti

Copyright 2019 WDIO-TV LLC, a Hubbard Broadcasting Company. All rights reserved


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