Mon, Jul 21, 2003
Some Question Purchase Of $100 Million In Piper Debt
Let's say you're
preflighting your aircraft, alone on the ramp in the pitch of
night, when suddenly, you hear a hushed voice from just a few feet
away. "Pssst, buddy. Have I got a deal for you." What would your
first reaction be? For a lot of us, we'd ask, "What's it gonna cost
me?"
That's a question asked in Sunday's Vero Beach (FL)
Press-Journal. In an editorial on New Piper's new-found
friend, American Capital Strategies, the paper urges "cautious
optimism." ACS has purchased $100 million in debt from the
struggling GA manufacturer, giving New Piper a little breathing
room after a round of bitter layoffs and a cloudy horizon to boot.
But the debt purchase is little more than a brief respite for New
Piper. Says the Press-Journal, "Clearly, despite the
newfound financial support, Piper must still stand on its own.
That's no mean feat in the aviation sector whose ongoing slump has
depressed sales and erased profits. Given those difficult odds,
Indian River County would be well-served to continue its pursuit of
diversified business development. Until this area begins attracting
significant numbers of well-paying jobs, the local economy remains
vulnerable."
ACS has a somewhat spotty record of
late.
While, according to the Vero Beach paper, the financial provider
is certainly no debt vulture, it has pulled out of seven ventures
so far this year. "(A)nalysts have noted recent slippage in its
loan performance," said the editorial. "This has trimmed both
valuation and stock price." The question may be, how long will ACS
maintain the status quo.. or is additional financing in the offing
(as rumored) to restore New Piper to a position of prominence?
More News
From 2023 (YouTube Version): Legacy of a Titan Robert (Bob) Anderson Hoover was a fighter pilot, test pilot, flight instructor, and air show superstar. More so, Bob Hoover was an i>[...]
Get The Latest in Aviation News NOW on Instagram Are you on Instagram yet? It's been around for a few years, quietly picking up traction mostly thanks to everybody's new obsession >[...]
Aero Linx: B-52H Stratofortress The B-52H Stratofortress is a long-range, heavy bomber that can perform a variety of missions. The bomber is capable of flying at high subsonic spee>[...]
Altimeter Setting The barometric pressure reading used to adjust a pressure altimeter for variations in existing atmospheric pressure or to the standard altimeter setting (29.92).>[...]
"Knowing that we play an active part in bettering people's lives is extremely rewarding. My team and I are very thankful for the opportunity to be here and to help in any way we ca>[...]