XCOR files financials with bankruptcy court Company claims it has only $1,424.66 in cash

In this 2015 file photo, the XCOR Lynx is on display at the Midland & Space Port terminal. XCOR has filed for bankruptcy. In this 2015 file photo, the XCOR Lynx is on display at the Midland & Space Port terminal. XCOR has filed for bankruptcy. Photo: MRT File Photo: MRT File Image 1 of / 1 Caption Close XCOR files financials with bankruptcy court 1 / 1 Back to Gallery

Beleaguered XCOR Aerospace has filed its financials with the U.S. Bankruptcy Court for the Eastern District of California.

XCOR filed for Chapter 7 bankruptcy Nov. 8. Chapter 7 involves liquidation to pay off creditors; however, the Midland-headquartered space company doesn’t have much in assets.

XCOR claims it has $1.1 million in assets — mostly through receivables — while liabilities totaling nearly $27.5 million, according to bankruptcy documents filed Friday.

The company reported just $1,424.66 in cash.

No value was given to the Lynx MK1, a spaceplane in development that would take off and land horizontally. Documents say the Lynx would require between $15 million and $20 million to finish. An estimated $25 million to $30 million was invested.

The promise of the Lynx enticed the Midland Development Corp. in 2012 to offer XCOR an upfront incentive of $10 million to relocate its headquarters from Mojave, California, to Midland. XCOR never completely moved operations to the Tall City.

The MDC is one of dozens of unsecured nonpriority creditors, though on Nov. 8 it took the step to become a secured creditor by filing uniform commercial code (UCC) financing statements in Texas, California and Florida. Secured claims are settled before unsecured claims.

The MDC has $10.03 million in unsecured claims, according to the filings.

The largest secured creditor is economic development group Space Florida. Its claim is nearly $3.6 million. XCOR agreed to construct the Lynx and fly out of Kennedy Space Center.

There is about $3.9 million in secured claims and about $23.6 million in unsecured claims in the filings.

XCOR reported that it had an interest in Orbital Outfitters, a second space company the MDC incentivized to move to Midland. Orbital designs spacesuits and was tasked with running the city’s Midland Altitude Chamber Complex.

According to the bankruptcy documents, Orbital is “out of business.” The Reporter-Telegram couldn’t confirm the status of Orbital.

The MDC offered Orbital $1.5 million toward the company’s salary and relocation costs, according to a 2014 Reporter-Telegram report. As part of the incentive package, the economic development group also agreed to construct Orbital’s building for $2.2 million and the altitude chamber complex for $3.2 million.