"Former" Mooney Entity Heads for Bankruptcy

Don't panic, but... Mooney Aerospace Group has filed a petition for reorganization under Chapter XI of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware on June 10, 2004. The company 'intends to rapidly work to file a plan of reorganization in the proceeding.' 

This is NOT the Mooney Aircraft manufacturing company. This is the older company that was once known as AASI prior to their taking over the assets of Mooney and abandoning their attempts to develop the Jetcruzer turbo-prop. It no longer has any interest in Mooney aircraft, despite the name, having sold all such interests. "It was probably a mistake to incorporate the Mooney name when we changed over from AASI, since it will just confuse people... but this (the bankruptcy filing) is nothing more than clearing up after the former holding company in the wake of the California suit," explained Mooney's J. Nelson Happy. The current Mooney operation was sold to Allen Holding Finance Ltd., on June 1st and the basic operations of the recovering company continue unabated. Allen agreed to assume all of the debt owed by MASG to its secured debenture holders, an amount in excess of $21 million, and invest $4 million in new capital for Mooney Airplane Company by July 27, 2004.

MASG lost a 23 million dollar suit on May 28, 2004 when the Superior Court of Los Angeles County entered a judgment in favor of MASG's former landlord AP Long Beach Airport LLC. affirming a prior arbitrator's award of $23,901,617.90 against MASG.

Mooney Airplane Company's (the folks actually operating the Mooney operation now) board of directors recently reported the adoption of "an aggressive business plan that will assure the long-term success and profitability of the company."

Barry Hodkin, Mooney Airplane Company's Chief Operating Officer noted that, "Allen Holding has committed sufficient working capital to fund our new business plan, and we look forward to working with our new parent to achieve our business objectives... We have had a tremendous reception of our new GX models, the Bravo GX and the Ovation2 GX, both of which incorporate the remarkable Garmin G-1000 glass panel display. We anticipate FAA certification of both aircraft in August, and we will have them on display at our booth in Oshkosh in July."

FMI: www.Mooney.com