As anticipated, no last-minute bids emerged for the assets of Eclipse Aviation and yesterday a federal bankruptcy judge in Albuquerque approved the $40 million offer from Eclipse Aerospace for the former builder of Eclipse 500 very light jets. Eclipse had entered Chapter 11 bankruptcy proceedings in November last year and Chapter 7 in February.
The trustee in the Chapter 7 bankruptcy proceedings for Eclipse Aviation late last week asked the bankruptcy court to approve the sale of the former very light jet manufacturer’s assets essentially “free and clear of liens, claims, encumbrances and other interests pursuant to the Agreement [with Eclipse Aerospace].” If all goes smoothly and no other bidders emerge, in a few weeks Eclipse Aerospace will close on a $40 million deal to buy the a
The long-awaited auction of the assets of bankrupt Eclipse Aviation might be held on June 24, according to Mike Press, owner of Eclipse 500 S/N 004 and president and CEO of Single Pilot Jet Management. Press and Eclipse depositor Mason Holland have formed a company, now named Eclipse Aerospace, to bid on the Eclipse assets.
The long-awaited auction of the assets of bankrupt Eclipse Aviation could occur on June 24, according to Mike Press, owner of Eclipse 500 S/N 004 and president and CEO of Single Pilot Jet Management. Press and Eclipse depositor Mason Holland have formed a company, now named Eclipse Aerospace, to bid on the Eclipse assets.
Although a number of proposals have been floated to buy the assets of bankrupt very light jet manufacturer Eclipse Aviation, none has attracted enough support or interest from the bankruptcy court to receive final approval.
Eclipse 500 owner Mike Press and deposit-holder Mason Holland on Friday launched a new company called Eclipse Jet to bid on assets of bankrupt Eclipse Aviation, restore Eclipse 500 product support and eventually return the very light jet to production. “Many of the owners are my personal friends, whom I’ve introduced to Eclipse and sold them their aircraft,” said Press.
Yesterday a judge verbally approved the motion to convert Eclipse Aviation’s bankruptcy from Chapter 11 to Chapter 7, which means the company’s assets will likely be auctioned to the highest bidder. Phil Friedman, CEO of Wichita-based Harlow Aerostructures, has formed New Eclipse Acquisition to bid on the assets and, if successful, work with suppliers to provide maintenance support and avionics and other upgrades.
In a letter sent to employees on Tuesday, Eclipse Aviation general manager Michael McConnell and CFO Mark Borseth wrote that “our company is out of time and money” and that the company’s senior secured creditors filed a motion in bankruptcy court for Chapter 7 liquidation. The plan by Eclipse’s largest shareholder, Etirc Aviation, to buy the company’s assets and eventually restart production of the Eclipse 500 VLJ has failed, they said.
On February 18, Eclipse Aviation’s board of directors elected to furlough most of the remaining 800 employees to conserve cash and allow more time to complete the bankruptcy court-approved sale of Eclipse Aviation to EclipseJet International. The latter is an affiliate of Eclipse Aviation CEO Roel Pieper’s company Etirc Aviation, which is Eclipse’s largest shareholder. The bankruptcy judge approved the Chapter 11 sale
Although the bankruptcy court approved the sale of Eclipse Aviation to EclipseJet International on January 20, the financing to complete the sale has yet to be finalized.