SJ30 Maker Emivest Files for Ch. 11 Reorganization

AINalerts » October 26, 2010
October 26, 2010, 12:02 PM

A Delaware bankruptcy court could decide as early as today whether to allow Emivest Aerospace to continue operations after the company filed for creditor protection and reorganization under Chapter 11 of the U.S. bankruptcy code late last week. The maker of the $7.5 million SJ30 light jet indicated that it could obtain up to $4 million in debtor-in-possession financing to keep its doors open and continue to support the four in-service SJ30s. Dubai-based Emivest purchased 80 percent of Sino Swearingen Aircraft in 2008 with plans to pump more than $1 billion into the company to restart serial production. While the company did deliver two aircraft last year, those grander plans never materialized and no aircraft were delivered subsequently. Three more aircraft currently are stranded on the production line. Court documents revealed that Emivest actually infused $38.4 million into the company from a revolving credit line. After 16 years of development and estimated expenditures of $700 million, the SJ30 was certified in 2005. Then the company said it had orders for more than 200 of the aircraft. However, last week there was only one employee remaining at its Martinsburg, W.Va. plant, built with more than $2 million in state funds on the premise of creating 400 jobs, where the SJ30’s wings, fuselage and tail are made. The telephone is still being answered at the company’s San Antonio headquarters.

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