Cirrus Restructures Debt, Presses On with Jet
Cirrus restructured more than $13 million worth of loan and lease obligations related to its Grand Forks, N.D. production facility with that city’s growth fund. Cirrus employs approximately 90 people in Grand Forks who make composite component parts for its SR piston aircraft that are then shipped to the company’s assembly line in Duluth, Minn. Since 1996, Grand Forks has issued various bonds and loans in support of these activities, including construction of more than 160,000 sq ft of facilities. Cirrus made no loan or lease payments to Grand Forks during the second half of last year while negotiating the restructuring. The deferred payments amount to $442,704. Under the deal, Cirrus will receive a “rent holiday” for the last six months of last year, enjoy reduced rent through this June and make a lump-sum payment to bring its loan current. Cirrus CEO Dale Klapmeier called the new deal “reasonable.” Meanwhile, he said the company plans to press on with its SF50 jet program, which has attracted deposits for 480 aircraft and is “slowly ramping up.” Klapmeier said 20 people are currently working on the SF50 and that a revised timetable for the program likely would be issued within the next three months.