Company Says Letters Sent To Over 50 Interested Parties
Confirming what many in the industry saw as an
inevitable certainty, on July 1 the Chemnitz
Local Court in Germany opened formal insolvency proceedings against
Thielert Aircraft Engines GmbH. Bruno M. Kuebler, who has already
served as the preliminary insolvency administrator, was appointed
as Thielert's insolvency administrator.
Kuebler stressed the company's business operations will continue
unchanged despite opening of the insolvency proceedings. "The
transition from preliminary to opened insolvency proceedings is a
purely formal act that has no noticeable effects on the
company’s relations with its suppliers or customers,"
according to a company release.
The commencement of formal insolvency proceedings -- roughly
equivalent to Chapter 7 liquidation in the US -- also marked the
official start of finding an investor for the company. "An investor
who is capable of securing the existence of the company on a
long-term basis at its business locations and continues to develop
the company’s leading position on the market for diesel
piston engines should get the nod," said Kuebler. "Of course, the
purchase price also plays a role."
Speaking of the purchase price, that figure is the sticking
point for one potential investor.
As ANN reported last month, Diamond Aircraft
-- Thielert's largest single customer -- proposed a consortium with
Cessna, Piper, and outside investors to take over the troubled
enginemaker, targeting an approximately $79 million purchase
price.
While an official target price has not been publicly disclosed
by Thielert, or Kuebler, there have been reports of an
approximately $158 million pricetag for TAE. To date, says
Thielert, Kuebler has written to over 50 prospective buyers, giving
a brief outline of the company's assets. Those letters also include
confidentiality agreements, which must be returned by July 16 in
order for those parties to be considered as potential
investors.
Those investors will then receive more comprehensive information
about the company toward the end of July 2008.
"Kuebler also asks the public to be aware that no information
may be published on prospective investors or the state of
negotiations until successful conclusion of the required
discussions with investors in order not to jeopardize these
discussions through indiscretion," the company states,