States as Creditors in Bankruptcy: Ohio and Skybus

Ohio has found itself as a major creditor in the bankruptcy of Skybus Airlines and it will, as other creditors will, get nothing.  The Ohio Department of Development gave Skybus 1.5 million taxpayer dollars to locate in Columbus.  One year later, the money and the airline are gone.  Ohio has filed a claim in bankruptcy and will get nothing.  The head of development in Ohio, the Lt. Gov., has indicated that it will "keep an open mind" about forgiving the debt for potential purchasers of the airline.  In other words, he has learned little.  There will be no purchasers and he will have to pony up another big new grant to get a new airline in town -- he will be willing to double down with tax dollars.