No Public Auction For Eclipse Assets | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

** Airborne 07.28.14/Oshkosh Day 1! ** HD iPad-Friendly Version--Airborne 07.28.14/Oshkosh Day 1 **
** Airborne 07.25.14--CLICK HERE! ** HD iPad-Friendly Version--Airborne 07.25.14 **

Wed, Jan 14, 2009

No Public Auction For Eclipse Assets

Interested Parties Walked Away, Source Says

Well, so much for that. Eclipse Aviation will not go up for public auction Wednesday, after the company failed to attract a single qualified bidder for the troubled planemaker's assets.

Citing statements from Dan Guyder, a partner with Eclipse's law firm, the Associated Press reports the Tuesday deadline for bids to be submitted and approved passed with little apparent fanfare. Eclipse consulted with two commitees made up of both secured and unsecured creditors to determine there were no qualified bids for the company.

A close source to the talks tells ANN no fewer than four entities considered bidding on the Eclipse assets, including at least one established business aircraft manufacturer... but in the end, each of those parties opted to walk away from the situation.

That clears the way for Luxembourg-based ETIRC Aviation, the largest shareholder in Eclipse, to continue its plan to buy the company through an affiliate. The AP states EclipseJet Aviation International intends to pay $28 million in cash for the company.

Part of that plan includes the issuance of $160 million in new notes, and offering 15 percent equity in the new company to current secured note holders.

As ANN reported, Eclipse filed for Chapter 11 protection November 25 in US Bankruptcy Court in Delaware. That announcement followed months of turmoil for the inaugural very-light jet manufacturer, including the ousting of company founder Vern Raburn as CEO, employee layoffs and a well-publicized, pre-Thanksgiving delay in paying those employees that still remained.

For the moment, Eclipse's production facilities in Albuquerque, NM remain in operation, propped up by post-petition, debtor-in-possession (DIP) financing.

FMI: www.eclipseaviation.com

Advertisement

More News

EAA AirVenture 2014 Welcomes The Boldest Human Space Mission Yet

Events To Highlight Industry Collaboration For Reaching The Planet Mars Leaders from the aerospace community held a press conference at EAA AirVenture on Monday to get the word out>[...]

Aspen Avionics, True Innovators, Present Oshkosh 2014 Special Event Coverage!

OSH2014 Sponsor: Aspen Avionics Aspen Avionics specializes in bringing the most advanced technology and capability into general aviation cockpits. Our products increase situational>[...]

Futuristic OSH2014 Sponsor: 'Beyond The Blue' - The Inside Story Of The XPRIZE

Meet Jim Campbell, TODAY/07.28, At EAA Wearhouse, Author's Corner, At 1500 And Get Your Signed Copy of Beyond The Blue!!! To Aviation Journalist and experienced Test Pilot, Jim Cam>[...]

Ready For Service... ConciAir Helps Present OSH2014!

ConciAir Is Here To Return Our Industry To Service! The name ConciAir is a play on the word "concierge", and our goal is to be able to accomplish any task placed before us in a tim>[...]

OSH2014 Sponsor: Eclipse Aerospace -- In Full Production!

The Eclipse 550: Economical. Efficient. Incredible. The Eclipse 550 not only has the lowest acquisition cost of any twin-engine jet on the planet, it also has the lowest operating >[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2014 Web Development & Design by Pauli Systems, LC