Sun, Jun 13, 2004
"Former" Mooney Entity Heads for Bankruptcy
Don't panic, but...
Mooney Aerospace Group has filed a petition for reorganization
under Chapter XI of the U.S. Bankruptcy Code in the U.S. Bankruptcy
Court for the District of Delaware on June 10, 2004. The company
'intends to rapidly work to file a plan of reorganization in the
proceeding.'
This is NOT the Mooney Aircraft manufacturing company. This is
the older company that was once known as AASI prior to their taking
over the assets of Mooney and abandoning their attempts to develop
the Jetcruzer turbo-prop. It no longer has any interest in Mooney
aircraft, despite the name, having sold all such interests. "It was
probably a mistake to incorporate the Mooney name when we changed
over from AASI, since it will just confuse people... but this (the
bankruptcy filing) is nothing more than clearing up after the
former holding company in the wake of the California suit,"
explained Mooney's J. Nelson Happy. The current Mooney operation
was sold to Allen Holding Finance Ltd., on June 1st and the basic
operations of the recovering company continue unabated. Allen
agreed to assume all of the debt owed by MASG to its secured
debenture holders, an amount in excess of $21 million, and invest
$4 million in new capital for Mooney Airplane Company by July 27,
2004.
MASG lost a 23 million dollar suit on May 28, 2004 when the
Superior Court of Los Angeles County entered a judgment in favor of
MASG's former landlord AP Long Beach Airport LLC. affirming a prior
arbitrator's award of $23,901,617.90 against MASG.
Mooney Airplane Company's (the folks actually operating the
Mooney operation now) board of directors recently reported the
adoption of "an aggressive business plan that will assure the
long-term success and profitability of the company."
Barry Hodkin, Mooney Airplane Company's Chief Operating Officer
noted that, "Allen Holding has committed sufficient working capital
to fund our new business plan, and we look forward to working with
our new parent to achieve our business objectives... We have had a
tremendous reception of our new GX models, the Bravo GX and the
Ovation2 GX, both of which incorporate the remarkable Garmin G-1000
glass panel display. We anticipate FAA certification of both
aircraft in August, and we will have them on display at our booth
in Oshkosh in July."
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