Cirrus Counter-offer Put on Hold
Convinced that he can round up enough U.S. investors to keep Cirrus Aircraft on American soil, consultant Brian Foley is organizing a counter-offer in a bid to trump China’s plan to buy the Duluth, Minn.-based light aircraft builder from majority owner Arcapita (58 percent) and the several hundred individual shareholders who currently own the company.
Cirrus Aircraft’s SF50 Vision single-engine jet program is “making good progress,” according to president and CEO Brent Wouters, who added that the company has spent $64 million so far on the program and will need to spend another $64 million to see the aircraft through certification. The order book as of early June stood at 431 aircraft, 106 of which were written in the first half of the year.
Cirrus Design filed a lawsuit against L-3 Avionics Systems aimed at stopping the spread of scuttlebutt that Cirrus is teetering on the edge of bankruptcy. L-3 Avionics sued Cirrus for $21.7 million last year after a deal for cockpit systems fell apart. Cirrus’ suit against L-3 alleges that the Grand Rapids, Mich.
Cirrus Design has filed a lawsuit against L-3 Avionics Systems aimed at stopping the spread of scuttlebutt that Cirrus is teetering on the edge of bankruptcy. L-3 Avionics sued Cirrus for $21.7 million last year after a deal for cockpit systems fell apart. Cirrus’ suit against L-3 alleges that the Grand Rapids, Mich.
While defining the SF50 Vision personal jet program as the company’s top priority, Cirrus president and CEO Brent Wouters yesterday told order holders that he did not know when the $1.72 million jet would enter service, based on the current funding levels.
Although Cirrus Aircraft fielded a large display at EAA AirVenture last week in Oshkosh, Wis., notably missing from the Cirrus exhibit area and Cirrus’s press conference was cofounder and board chairman Alan Klapmeier. Now the Cirrus board of directors has decided not to renew Klapmeier’s contract and to seek a new chairman when his term expires at the end of this month.
Alan Klapmeier, chairman of Cirrus Aircraft, has formed a team to raise funds to try to buy the Vision SF50 single-engine personal-very-light-jet program from Arcapita Bank, the majority owner of Cirrus. “I feel comfortable that we can do this,” said Klapmeier.
L-3 Avionics Systems is seeking $21.7 million in a lawsuit against lightplane maker Cirrus Design over the cancellation of an order for SmartDeck cockpit systems and money allegedly owed for Stormscope and other stand-alone products.