Mon, Sep 24, 2007
Columbia Aircraft Manufacturing
Corporation has issued a statement indicating that it has filed a
voluntary petition for reorganization under Chapter 11 of the U.S.
Bankruptcy Code. 'This action has resulted from a series of events
dating back to 2006 that hampered the Company’s ability to
deliver aircraft and disrupted cash flow. These events include an
unanticipated and damaging delay in the certification program for
the G1000 avionics suite, a freak hail storm that damaged 67
aircraft awaiting certification and finally the recent supply chain
disruption for essential avionics equipment.'
'Concurrently, Columbia announced that it has received a $3
million interim commitment for Debtor-in-Possession financing from
certain of its pre-petition lenders. The Company will be filing a
motion with the Bankruptcy Court seeking approval for this
financing on an expedited basis.'
'Columbia Chief Restructuring Officer, Carl Young, emphasized
that the bankruptcy filing was required to enable the Company to
continue its normal operations and said, “It is very
gratifying that our pre-petition lenders are willing to support the
Company during this difficult time. We believe that, coupled to the
other strategic decision announced today, this infusion of
liquidity will allow Columbia to manage its present cash flow and
liabilities while pursuing a plan that enables us to continue
operating normally and maximize value for stakeholders, employees
and existing and future customers.”'
'Concurrently Columbia filed a motion with the Bankruptcy Court
seeking approval for a sale of substantially all of its assets to
Cessna Aircraft Company, the world's largest manufacturer of
general aviation airplanes as measured by unit sales. As part of
that motion, Columbia is also asking the Bankruptcy Court to
establish bidding procedures that will enable other interested
bidders to submit offers and bid at an auction currently scheduled
to be held in November.'
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