Possession of a helicopter owned by Gov. Jim Justice’s family business is up in the air.
A federal judge today issued an order to halt the seizure of a 2009 Bell helicopter that is now the subject of multiple claims. U.S. District Judge James P. Jones of the Western District of Virginia wants to sort it all out and have some hearings. His order also called a halt to concealing the helicopter’s location.
The timeout is necessary because so many entities are spinning their claims to the helicopter.
Caroleng Investments Limited, parent company to the Russian mining company Mechel that bought and sold properties with Justice, is seeking the helicopter’s seizure over a debt now piling as high as $13 million that was already recognized and awarded in the federal court system.
Caroleng hasn’t been able to collect on its judgment through other means. Liquidating the helicopter, conceivably, could satisfy a portion of the debt.
U.S. marshals were directed a week ago to seize the helicopter, a reflection of executing judgments already rendered several years ago in the court system.
The Justice family’s Bluestone Resources has objected to the helicopter seizure by a company “controlled by a Russian oligarch.” Bluestone’s lawyers say that if the helicopter is seized and liquidated then the money should instead go to different lenders higher up the food chain.
One of those lenders, 1st Source Bank of Indiana, jumped in this week to identify itself as a lender with a perfected, first-priority security interest on the helicopter.
Lawyers for 1st Source cited a 2018 loan for $1.55 million. The loan identified the helicopter as collateral. There were additional loans for more equipment after that, too, including for another helicopter, a 2012 Bell model, and a couple of helicopter engines. An agreement to restructure all of that resulted in a principal loan amount of $10.4 million.
Through the middle of this month, 1st Source was still owed $5 million, “which is far in excess of the value of the helicopter,” according to the court filing.
“Pursuant to applicable law, the U.S. Marshal would have to sell the helicopter subject to 1st Source’s lien in the helicopter, which would be futile because no rational third party would purchase the helicopter, which is believed by 1st Source to be worth approximately $1.2 million, if title to the helicopter is encumbered by a $5 million lien.”
The lawyers for 1st Source requested a stay of the seize and a hearing to determine the rights of “Plaintiff, Defendant, 1st Source, and any other party with an interest in the helicopter.” Meanwhile, 1st source wants a $1.2 million bond on the helicopter to protect its value, even if it is seized and turned over to Caroleng.
The U.S. marshals were directed in a federal court filing last Thursday to move toward getting the helicopter located at the Roanoke-Blacksburg Regional Airport in Virginia.
Lawyers for Caroleng complained in a court filing this week that the day before that order came down, the helicopter was flown “to Burlington, North Carolina, presumably to hide it from the United States Marshal Service, frustrating the enforcement of the writ.”
The judge hit pause and called for a hearing to untangle all of that.