Paragon Industries in court mandated receivership amid financial issues

Embattled Paragon Industries in Sapulpa is now in a court-ordered receivership after the company defaulted on an $18 million loan from Byline Bank.

Court documents say Paragon Industries and CEO Derek Wachob failed to make payments over the last 7 months and failed to provide financial statements from the previous year. The loan was issued in 2020 with the company and its assets listed as collateral.

The third party, appointed by a Creek County Judge, is David Rhoades, a turnaround professional who specializes in business management, fraud, bankruptcy and crisis management. Since his appointment, he has asked the court to remove the Paragon Board of Directors which was granted last week.

Earlier this month, another bank tried to repossess a black Citation Longitude Jet at Christiansen Jet Center belonging to Wachob. PNC Bank filed a petition in Tulsa County court that says Wachob showed up at the airport during the repossession and prevented the bank from re-claiming the airplane. The petition says Wachob owes more than $11 million in payments that include interest and fees.

Paragon and Wachob have been in the middle of more than $200 million in lawsuits filed since September of 2024.

Timeline: Paragon Industries faces financial issues, lawsuits

News On 6 asked David Rhoades, Byline Bank and Paragon how this will impact the future of the company and its remaining employees but has not received a response.