Agreement Would Divide Assets With Builders Who Have Projects Underway

U.S. Bankruptcy Judge Randall Dunn has ruled that the assets of Epic Air will be divided between a Chinese company who bid on the company and builders who have projects underway for the kit-built LT turboprops.

The judge ruled that China Aviation Industry General Aircraft Co. could buy the assets outright, but only if it would sign an agreement to allow the customers, organized as LT Builders Group, to restart and manage the manufacturing facility in Bend, Oregon. He placed a deadline of Thursday on finalizing the agreement.

The newspaper The Oregonian reports that should that condition not be met, the judge is prepared to allow Harlo Aerostructures of Kansas to buy Epic's assets.

Negotiations between the three parties have been going on nearly around the clock for several days. The Chinese had originally intended to ship the entire operation to China, saying the builders had not prepared an adequate financial proposal.

According to the paper, the Chinese have been hoping to acquire the technology to build turboprops for the small but rapidly growing business aviation market in that country. If the agreement is finalized, they will get that. And while the builders will not have control of the company, they will be able to develop the U.S. business under licence from  China Aviation. "It's not the position that we wanted to be in but we're going to make the best of it,"  said Doug King, an LT Builders manager whose plane remains unfinished.

Epic LT File Photo

Bend City Attorney Gary Firestone said he was pleased that the judge had found a way to possibly keep some of the business in Oregon, and in particular at the Bend airport where Epic had been based.

Harlo Aerostructures said it should not be counted out, and that it was still looking for a way to "elbow out" the Chinese company. But the paper reports that the judge was very clear that the builders group was to work with the Chinese. The negotiations are ongoing.

FMI: www.epicaircraft.com