Tuesday, November 25, 2008

Eclipse Aviation Files for Bankruptcy, Seeks to Sell Assets

Eclipse Aviation, which blazed the way for the manufacture of cheap very-light jets, filed for Chapter 11 bankruptcy protection in Delaware today.

Eclipse said it would seek court approval for debtor-in-possession financing and
the sale of "substantially all" of its assets under Section 363 of the U.S. Bankruptcy Code.

Eclipse announced an agreement to sell its assets "for a combination of cash, equity and debt," to an affiliate of ETIRC Aviation of Luxembourgh -- "subject to higher and
better offers."

Eclipse described ETIRC Aviation as "a principal driver" of the very-light jet industry in Europe. ETIRC is Eclipse's major shareholder and its chairman, Roel Pieper, has been the acting CEO of Eclipse since July 2008.

Citing "unprecedented economic challenges," Pieper said that the asset sale would "position the business for aggressive global expansion." He did not elaborate on whether there are potential plans to resume production of the $2.15 million, five-seat Eclipse 500 jets.

From what I can ascertain, ETIRC Aviation is a distributor and marketer, not a manufacturer. Here and here.


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