Former North Carolina Auditor Les Merritt released a flurry of audits late last week before his successor, current State Auditor Beth Wood, took the oath of office on Saturday. One of the audits discussed the indebtedness of the Global Transpark in Kinston, N.C.. From the audit:
…the (Transpark) Authority has a loan outstanding including accrued interest totaling $33,933,088 to the North Carolina Escheat Fund. The maturity date of the loan has been extended to October 1, 2009. The current amount of operating cash held by the Authority is not sufficient to pay the balance due to the North Carolina Escheat Fund and as such, substantial doubt about the Authority’s ability to continue as a going concern exists. In addition, if the Authority declares bankruptcy, funding received to date from the Federal Aviation Administration (the “FAA”) may be required to be paid back. As of June 30, 2008, the Authority’s amortized potential liability to the FAA was approximately $17.6 million. These conditions raise substantial doubt about the Authority’s ability to continue as a going concern.
Former Gov. Mike Easley praised the Transpark as recently as May and has been a big supporter of the project. Carolina Journal has reported on the Transpark here.
