Columbia Aircraft Manufacturing Corporation has issued a statement indicating that it has filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. 'This action has resulted from a series of events dating back to 2006 that hampered the Company’s ability to deliver aircraft and disrupted cash flow. These events include an unanticipated and damaging delay in the certification program for the G1000 avionics suite, a freak hail storm that damaged 67 aircraft awaiting certification and finally the recent supply chain disruption for essential avionics equipment.'

'Concurrently, Columbia announced that it has received a $3 million interim commitment for Debtor-in-Possession financing from certain of its pre-petition lenders. The Company will be filing a motion with the Bankruptcy Court seeking approval for this financing on an expedited basis.'

'Columbia Chief Restructuring Officer, Carl Young, emphasized that the bankruptcy filing was required to enable the Company to continue its normal operations and said, “It is very gratifying that our pre-petition lenders are willing to support the Company during this difficult time. We believe that, coupled to the other strategic decision announced today, this infusion of liquidity will allow Columbia to manage its present cash flow and liabilities while pursuing a plan that enables us to continue operating normally and maximize value for stakeholders, employees and existing and future customers.”'

'Concurrently Columbia filed a motion with the Bankruptcy Court seeking approval for a sale of substantially all of its assets to Cessna Aircraft Company, the world's largest manufacturer of general aviation airplanes as measured by unit sales. As part of that motion, Columbia is also asking the Bankruptcy Court to establish bidding procedures that will enable other interested bidders to submit offers and bid at an auction currently scheduled to be held in November.'

FMI: www.flycolumbia.com, www.cessna.com