Mon, Sep 24, 2007
But Columbia HAS Declared Bankruptcy (Case #07-333850)
Cessna has confirmed to
ANN that it has signed a Letter of Intent (LOI) with Columbia
Aircraft Manufacturing Corporation to acquire selected assets and
certain liabilities of the Bend, Oregon-based aircraft
manufacturer.
According to Cessna Chairman, President and CEO Jack J. Pelton,
"Columbia's unique capability in the high-end single-engine piston
market makes it a perfect complement to our Next Generation Piston
product line and could provide our customers with the option of an
outstanding low-wing, high-performance piston airplane. We believe
the combination of this superb product line and Cessna's world
class support structure and brand will be unbeatable."
Columbia today filed a voluntary petition for reorganization
under Chapter 11 of the U.S. Bankruptcy Code.
"We have explored many options over the past months," said
Columbia Chief Restructuring Officer Carl Young.
"This path enables the Company to manage its present cash flow
and liabilities while pursuing a plan that enables us to continue
operating until a final sale can be completed."
Columbia submitted a motion with the Bankruptcy Court seeking
approval of the sale to Cessna and establishing bidding procedures
that enable other interested bidders to submit offers and bid at an
auction to be held in November. The sale to Cessna is
contingent upon the approval of the Bankruptcy Court and the
satisfaction of the closing conditions set forth in the LOI,
including the execution of a definitive purchase agreement with
Cessna.
"The sale of Columbia Aircraft Manufacturing assets to Cessna
offers the best avenue to maximize value for all of Columbia's
stakeholders and existing and future customers. Cessna is
excited about the prospect of adding the Columbia products to its
product line and will provide additional capabilities, world-class
processes and financial strength to effectively serve existing
Columbia customers and grow the business. Under the agreement
reached with Cessna all product warranty and service issues will
continue to be honored post-acquisition and customers should expect
an enhanced customer experience once the deal closes," Young
said.
Young emphasized that the bankruptcy filing was deemed necessary
to enable the Company to continue its operations including
manufacturing and delivering of new aircraft and uninterrupted
support of the installed customer through parts, warranty and
technical assistance.
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