A Branson-based aviation expert said the Branson Airport needs more capital to make it through 2014.
Michael Hynes, of Hynes Aviation Services, said the airport will need an additional $3 million to $5 million, by his estimations, to cover payments to bondholders.
An amendment to the forbearance agreement in April 2013 extended the agreement to June 30, 2014, according to documents filed with the Municipal Securities Rulemaking Board.
“While the forbearance agreement in effect may be terminated, I don’t think there is going to be any affect as such on the Branson Airport with the exception that the forbearance agreement gave the investors some breathing room as to when they had to come up with more capital,” Hynes said. “I would think the bondholders would press the existing investors to come up with more capital quicker than they planned on.”
Branson Airport Executive Director Jeff Bourk could not be reached by Branson Tri-Lakes News press time.
According to filings with the Municipal Securities Rulemaking Board, the airport reported a $7 million net loss for the year at the end of September 2013. Financial statements for the fourth quarter were not available.
“I can’t imagine them closing it down,” Hynes said. “However they come up with funding, they’ve got six months to do it.
“Based on their numbers now, they’re certainly going to be hurting by June, and they won’t make it to the end of the year without significant capital.
“They’ve been aware, and so far, they’ve stepped up to the plate and come up with the money. While it’s distressing as they continue to do that, that’s what entrepreneurship is all about.”