“EPS Engineered Propulsion Systems, LLC” Formed By Chinese And Other Interests Intent On Taking Possession
Engineered Propulsion Systems, Inc, of New Richmond, Wisconsin, has filed for Chapter 11 bankruptcy protection. The company undertook this development of its own initiative via their debtor’s attorney, James D. Sweet of Steinhilber Swanson LLP.
The EPS Diesel engine program had been getting serious attention from civilian and military parties while the company reportedly spent some $60 million in private investment dollars to seek a working production version and eventual certification.
At an Oshkosh presentation in 2017, CEO Michael Fuchs (pictured) presented preliminary testing results for the EPS 4.3 liter diesel engine in development during a media briefing at AirVenture. The engine, an 8 cylinder 180 degree horizontally opposed mill, targeting the O-540/550 family has showed good performance in testing aimed at certification. The Graflight V-8 engine employs an electronic control system designed and manufactured by industry leader Bosch General Aviation Technology to dramatically reduce pilot workload and ensure efficiency and ease of operation. The engine is controlled with a single power lever, leaving traditional pilot chores like propeller pitch, fuel mixture and controlling engine temperature to the computer, reducing the risk of pilot error.
The engine is designed with 'extremely rugged' technologies, like steel pistons and CGI iron crankcases that provide superior strength and durability over aluminum without sacrificing weight. This reduces maintenance costs significantly by increasing the targeted Time Between Overhauls (TBO) to 3,000 hours, a 50 to 100 percent increase over the industry’s current values of 1,500 to 2,000 hours.
The engine has undergone high altitude testing in Colorado and high temperature testing in Arizona, both efforts indicating operating in these extremes as expected with no adverse behaviors thus far. The engine is rated at 408 horsepower for takeoff and will maintain that output to 30,000 ft with an expected TBO of 3000 hrs.
Fuchs then stated that although the development process was long and costly the company had funding in place to achieve their production certificate and enter production with first deliveries expected "soon" without committing to a firm date.
At the present time, there is a buyer in the wings, currently working under 'debtor-in-possession' status to support the company with payroll and other funds through next month, as approved by the BK court. Still; the company estimates that it will need another 12-15 million dollars to see the program through to completion.
The D-I-P was revealed in a shareholder meeting held on Thursday August 4th, 2020.
According to EPS statements, EPS’ attorney James Sweet said that a receiving entity named “EPS Engineered Propulsion Systems, LLC” was formed in Delaware by Chinese and other foreign interests’ intent on taking possession of EPS.
They are in the process of preparing a binding “stalking horse bid” to assume all assets in a Section 363 auction process defined by the US Bankruptcy Code. The first step in that process 'typically entails the debtor’s execution of a binding “stalking horse” agreement with an initial purchaser against which higher and better offers can be solicited, and which spells out that the stalking horse will be deemed the “highest and best” bid if no competing proposals are received.'
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