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SALT LAKE CITY (AP) -- A Cedar City flight school that was shuttered in March has filed for bankruptcy amid allegations that it had improperly charged students thousands in up-front tuition.
The National Pilot Academy filed for Chapter 7 bankruptcy protection in April and wants the court to liquidate its assets to pay off its debts. Court filings value the firm's assets at $131,000 and list $712,000 in debts. NPA's debts may be much higher as court papers show many creditors' claims are listed as zero or "unknown."
Last year state regulators tried to force NPA managing partner Cole Faddis to stop charging tuition or post a bond. Unless registered or bonded, Utah flight schools can only charge for lessons 24 hours in advance.
Court documents filed in August by the Utah Division of Consumer Protection say Faddis charged students $45,000 to $60,000 in upfront fees.
Faddis has repeatedly failed to appear at 3rd District Court hearings in the case, which is separate from the bankruptcy filing. The next hearing is set for June 4.
NPA was headquartered in Cedar City and had satellite offices in Arizona, Florida and Nevada. The school promised to fast-track budding pilots to aviation careers.
To qualify for federal student loans, Utah students said they enrolled in Utah Valley University's online aviation programing, believing NPA was formally affiliated with the Orem school. School officials say no partnership existed.
With the school's closing, many students are left with large loans and no careers.
"You can't afford to pay someone else to teach you to fly because you have to pay these loans back," said Tommy Howard, who moved from California to Utah in 2006 to train at NPA.
As many as 140 students are named creditors in the bankruptcy. Other creditors include unpaid flight instructors, insurance providers and aviation service companies, including an Oklahoma firm that leased Cessna aircraft to the school.
Some former NPA instructors are trying to help students finish flight training. They've launched a new school at the Cedar City Airport.
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Information from: The Salt Lake Tribune
(Copyright 2009 by The Associated Press. All Rights Reserved.)
