The Navajo Nation is being warned to move slowly on a $34 million deal to host an aircraft parts plant.
The New Mexico Finance Authority and the state's Economic Development Department reviewed the tribe's deal with Utilicraft Aerospace Corp. The two agencies questioned whether the tribe would get anything out of it, citing the company's past bankruptcies, questionable customers and the size of the CEO's severance package.
The deal calls for the tribe to invest $34 million to get a 25 percent stake in the company. But the state says the firm is only valued at $8 million to $10 million.
A Navajo Nation Council committee has approved the first $1.25 million with final approval for the rest to come from the full council.
Get the Story:
Aircraft Deal Called 'Risky'; State Warns Navajos To Go Slow Before Investing
(The Albuquerque Journal 1/22)
State warns Navajos to slow down on aircraft deal
(AP 1/22)
Related Stories:
Navajo Nation to consider aircraft parts
plant (12/13)
Navajo Nation warned about aircraft plant deal
Monday, January 24, 2005
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