Is Cessna Now A Shoo-In For Columbia Purchase?

ANN has learned that Aerospace Entrepeneur, Granger Whitelaw, is in the process of informing a number of parties associated with Columbia Aircraft, that he will not bid on the company in the upcoming bankruptcy auction.

ANN has gotten a hold of the text of a letter being sent to the company's staff, creditors and minority shareholders in which Whitelaw announces his intention to NOT bid for the assets of the company and details some of the concerns that led him to that decision. The full text of the letter is reproduced below...

Granger Whitelaw Letter

To the employees, creditors and minority shareholders of Columbia Aircraft;

It is with great regret that I must inform you that we will not be submitting a bid in the bankruptcy auction for Columbia Aircraft Manufacturing. We remain convinced that this is an exceptional company that can have an incredible future as either a standalone manufacturer or as an addition to an existing line should an aircraft manufacturer win the auction. However; that will only happen if a real commitment is made and proper care and attention is given to Columbia.

Cessna & Cirrus have both said they would fully support the Columbia 350 & 400 as premiere additions to their product offering. We will now see what their true intentions are should either be the successful bidder. If they do not follow up on their commitment, we will be here to pick up the pieces and rebuild the business as we had originally intended.

As many of you know, we had attempted to purchase the company prior to the bankruptcy filing, but were prevented from doing so by the Malaysian board of directors and its advisors ING, Bridge Associates and Tonkin Torp, LLC. Our offer to purchase the company represented, in the opinion of many, the best opportunity for the minority shareholders, creditors and employees to be protected from the bankruptcy process.

We had offered to fund the company during the acquisition process, had met every condition put forth by the board and deposited three million dollars into a trust account, but ultimately the Malaysian board decided to follow the advice of their advisors and put the future of Columbia, its minority shareholders, creditors and employees in the hands of the bankruptcy court.

We remained active during the bankruptcy process in an attempt to safeguard the company and its employees and made substantial contributions in ensuring that the winning bidder commit to the survival of the company and in reducing the 'success fees' sought by ING and Bridge Associates in their failed efforts to turn the company around. The recent motion we withdrew, after being contacted by Columbia with their full support, stopped Bridge from receiving an additional 2% fee on the sale of the business and reduced their current, and exhorbitent weekly fees by 20%. This alone will save the existing creditors $1.5 + million dollars that they can recoup against the monies they are owed by Columbia.

We remain committed to the future of Columbia and are willing to play a role in its future growth should such an opportunity present itself without dishonesty and with the proper time to properly structure and build for its future.

We wish you only the best of luck and success but do urge you to make sure you keep the bidders to their word!

Sincerely, Granger Whitelaw

FMI: www.grangerwhitelaw.com