Call For 'Mutually Beneficial' Relationship... But 'Will Consider All Options'

Customers of Eclipse Aviation announced this week the formation of an Ad Hoc Customers Committee to represent owners and position holders -- many of whose dreams of flight remain grounded, they say, since the troubled VLJ manufacturer filed Chapter 11 bankruptcy on November 25.

Prior to the filing of the Chapter 11 case, Eclipse delivered 259 aircraft and took deposits in the estimated amount of $300 million for future deliveries of aircraft. The company recently reported its order book stands at approximately 1,100 aircraft... but with uncertainty looming about the struggling company's future, it's a distinct possibility depositors who hadn't yet received their planes never will.

The bankruptcy also affects existing owners, who have already found their maintenance and repair options severely curtailed by Eclipse's travails.

"Eclipse customers hold contracts under which Eclipse is obligated to provide warranty coverage, upgrades, uninstalled equipment, maintenance coverage, subscription services, and future aircraft deliveries," the committee says. "In terms of dollar amount, customers are likely the largest constituency in Eclipse's Chapter 11 case."

David Green was selected to be chairperson by Committee representatives. Green is also the president of the Eclipse 500 Owners Club, a founding group of Eclipse 500 jet owners and position holders. The Committee's steering committee members include: Mason Holland, Shaun Hughes, Ron Lebel, Daniel Mancini, Ken Meyer, Don Morris, Mike Press, Randall Sanada and Raul Segredo.

"The Ad Hoc Customers Committee is funded by the owners and position holders in recognition that a unified voice is the most effective way to ensure that customers are fairly treated and that the Eclipse order book is preserved as one of the most valuable assets of Eclipse," Green said.

As ANN reported, Eclipse is seeking authority to sell substantially all its assets under Section 363 of the Bankruptcy Code. This week, Albuquerque television station KRQE-13 reported a federal bankruptcy judge in Delaware had approved Eclipse's Chapter 11 plan, and that the company has until January 12 to line up a buyer... or else be forced into liquidation by the court.

Current Eclipse CEO Roel Pieper is also chairman of ETIRC, Eclipse's largest shareholder... as well as the most prominent bidder for Eclipse's assets. KRQE notes court documents show at least two bidders for the company, however. What that means to customers remains unclear.

"Finding a mutually beneficial outcome with the purchaser is our purpose; but all options are under consideration as we fulfill our mandate of protecting the interests of the customer group," Green said.

The Customer Committee retained the law firm of Perkins Coie as lead counsel, Klehr Harrison, as local counsel in Delaware, and the financial advisory firm of Obsidian Finance Group, LLC to represent its interests. Steven Hedberg leads the legal team and Kevin Padrick leads the team providing financial advisory services.

FMI: www.eclipse500club.org, www.eclipseaviation.com