Bankrupt Emivest Wants More Time
Emivest Aerospace is asking that its court-administered Chapter 11 bankruptcy protection be extended through midsummer while it tries to complete the sale of its assets to an entity owned by the Chinese government. Last week, attorneys for the maker of the SJ30 light jet filed a motion with the U.S. Bankruptcy Court in Delaware requesting that the company be given until May 18 to file a formal bankruptcy reorganization plan and until July 17 to gain creditor acceptance of it. Emivest filed bankruptcy on October 20 last year and has been operating on a reduced scale with debtor-in-possession financing. Emivest is seeking to have its assets acquired by China Aviation Industry General Aircraft (CAIGA, also known as Avic General Aviation), the same company that acquired the assets of Epic Aircraft last year, and is currently pursuing the purchase of U.S.-based general aviation engine maker Teledyne Continental Motors for $186 million. Creditor Williams International, which makes the SJ30’s engines, is urging the court to approve the Emivest asset sale to CAIGA, noting that the Chinese firm has said it plans to invest “more than $100 million” to restart SJ30 production.