Problems Eclipse Jet

[aviodromefriend]

While surfing for another hobby than aircraft I found an article from de Volkskrant about problems at Eclipse Jet. A mayor customer has walked away, bringing the company to the edge of bankruptcy. Personal interference from CEO Roel Pieper seems to have solved a bit of this problems, as is said at http://www.debasketballsitevannederland ... /1441/214/" onclick="window.open(this.href);return false; if we should believe the person talking about this here. (Personally my experiences with this man are that he is absolutely denying if there are problems like these) so with this mention in the press, we should keep our fingers crossed for Eclipse.

As this was published in the sports section, you may have overlooked it, so I post it here.

Unfortunately you have to log in at this site to read it (and I'm not going to give my password)

[cHabu]

.

Eclipse Aviation filed for Chapter 11 bankruptcy protection today and it appears ETIRC,
the company controlled by current CEO Roel Pieper, is moving to consolidate its
hold on the troubled planemaker. According to a news release from Eclipse, the company
is "seeking court approval for debtor-in-possession (DIP) financing and procedures for
the sale of substantially all of its assets under Section 363 of the U.S. Bankruptcy Code.
" At the same time, it announced it has a buyer for the assets, described as "an affiliate of
ETIRC Aviation S.a.r.l., Luxembourg" and that the deal is subject to "higher offers."
According to court documents filed by Eclipse in support of the petition, the company
owes investors about $577 million and has racked up about $135 million in debt to vendors and suppliers.

Full story here.

Credit: AvWeb.com / Russ Niles, Editor-in-Chief.

Bye, Chris.

[cHabu]

Eclipse Plan Approved, Factory Doors Still Open.


Just one day after filing Chapter 11 bankruptcy last Tuesday, a group of investors,
including European distributor Etirc Aviation, received court approval to provide interim
financing to keep the very light jet manufacturer open and its 954 employees working.

The financing is intended to ensure Eclipse Aviation is a viable entity when its
assets go up for public auction next month. Etirc Aviation chairman Roel Pieper,
also chairman of Eclipse, believes his group is well positioned to purchase Eclipse Aviation
and he doesn’t expect any of the major manufacturers to bid. The bankruptcy option
was unavoidable, he said. “We came to the conclusion that the belief in the product
is there, the market opportunity is there, but the financial burden…was just too much.
” Amid efforts to secure more funds, he said, “The market just crashed right in front of us.”

Although the bankruptcy filing negates existing contracts with deposit-holders,
refund requestors, suppliers and current customers under warranty, Pieper said
Eclipse must work with all stakeholders. “We will clearly honor and be fair to the
customers in the best way possible,” he said, “and we’re going to be very fair to the suppliers.
We have to find a way to go forward together.”

Credit: AINallerts.com

Bye, Chris.

[ehusmann]

For those who are interested in Eclipse, this report by Richard Aboulafia of Teal Group is an interesting read. If only half of it is true, Eclipse seems doomed.
I have always found the ´booming´ taxi business a strange phenomenon and always considered it a bubble. It now seems to be kind of true.

Erwin

[aviodromefriend]

According to flugzeugforum, it is all over now for Eclipse Jet, 800 man are fired.

[flying_kiwi]

According to flugzeugforum, it is all over now for Eclipse Jet, 800 man are fired.

Yeap.
Unfortunately for the employees, the three largest creditors requested Chapter 7 (liquidation), so it's all over for this version, although there is the possibility that someone will buy the assets and start from scratch.

Regards,
Yorden

[Herbertvh]

. . . although there is the possibility that someone will buy the assets and start from scratch.

Isn't that what ETIRC has done? I'm a bit confused now about who exactly went bankrupt: the original Eclipse company, or the ETIRC setup that took over most of the assets of the original company . . .

[flying_kiwi]

. . . although there is the possibility that someone will buy the assets and start from scratch.

Isn't that what ETIRC has done? I'm a bit confused now about who exactly went bankrupt: the original Eclipse company, or the ETIRC setup that took over most of the assets of the original company . . .

Eclipse first filed for Chapter 11, and ETIRC were going to buy out the other shareholders, and provide Eclipse with the finances needed to continue business.
Unfortunately, ETIRC couldn't arrange the financing quick enough to satisfy the creditors, so they requested that the administrator liquidate the company.

Regards,
Yorden

[Herbertvh]

Ah, thanks for clearing that up!

[aviodromefriend]

And for what it is worth/on-topic: ETIRC, that was slated to take over Eclipse, has been declared bankrupt to last thursday, leaving a dept of over 1,000,000 Euro.

Source RTV-NH Teletekst page 502