The state of Wisconsin could be just days away from launching legal action against One Aviation unit Kestrel Aircraft to recover an estimated $3.6 million in combined delinquent state, county, and local loan payments made to the company since 2012, when it agreed to develop and build the K-350 single-engine turboprop in Superior, Wisconsin. Wisconsin Economic Development Corporation (WEDC) spokesman Mark Maley told AIN this week that the state, county, and city finalized a “joint litigation agreement” last week to pursue Kestrel, and that legal action is imminent.

The Wisconsin package for Kestrel included a $2 million loan from WEDC in 2012 and another $2 million federally funded state small business credit incentive loan; Kestrel has repaid approximately $865,500 on the former. The company also owes the city of Superior $2.2 million and Douglas County $500,000....