AOPA Says American, French-Canadian Groups In Running

The Aircraft Owners and Pilots Association reports 2007 may not be as bad of a year for Symphony Aircraft Industries as many thought. The company announced it was entering liquidation last month... but it appears two buyers have shown interest in acquiring the assets of the currently-defunct planemaker.

AOPA says two groups -- an unnamed American aviation company, and a French-Canadian group -- have indicated interest to the Canadian bankruptcy court in making an offer for all assets of Symphony Aircraft.

An investor who had previously indicated interest in the company, but pulled out January 19 (all-but-guaranteeing the company would be liquidated) is not among either group, nor is previous Symphony CEO Paul Costanzo.

As Aero-News reported, Symphony filed for protected status -- the Canadian equivalent of Chapter 11 reorganization, although not technically "bankruptcy" -- in June 2006. At that time, Costanzo stated the planemaker hoped to secure new funding, but cited difficulties with that plan due to the Canadian investment market. Symphony is based in Trois-Riveres, Quebec.

SAI went to court January 22, 2007 to have its Plan of Arrangement with its creditors ratified... but due to the potential investor pulling out, secured creditors filed a petition in bankruptcy against the company instead. The court ruled Symphony's assets be sold, to pay back the company's debts.

SAI manufactured the SA160, a two-seat, high-wing trainer. The company marketed a glass-cockpit version of the plane equipped with an Avidyne Entegra panel, but the company was not able to obtain FAA certification for the package due to it filing protected status. SAI had also taken steps to develop a Thielert-diesel-powered version of the plane, as well as a larger four-seat variant.

Before any new offers for the company will be heard, SAI's creditors will meet February 24. That should be an interesting meeting...

FMI: www.symphonyaircraft.com