Kuebler Seeking Investors As Company Heads To Full Insolvency

Have rumors of Thielert Aircraft Engine's imminent exit from the engine-making business been greatly exaggerated? The troubled German manufacturer would like us to believe so... and announced Wednesday it has a "full head of steam" to resume full production, even as the clock counts down to full insolvency proceedings.

"With immediate effect, the company can once again supply the Thielert Centurion 2.0 engine in large quantities," Thielert said in a statement to ANN.

As ANN reported, production at Thielert came to a halt in April 2008, after the company was forced to petition for insolvency due to questionable financial practices by company founder Frank Thielert.

Dr. Bruno Kuebler was named the provisional insolvency administrator assigned to the case... and, to the consternation of Thielert's largest customer, Diamond Aircraft, rejected the London, Ontario planemaker's attempts to secure engines and spare parts for its existing fleet of TAE-powered DA40 tdi and DA42 aircraft, as well as planes now on the assembly line.

At last month's Berlin Air Show, Diamond accused Kuebler of acting against Thielert's best interests... and being interested only in bilking more money from customers and investors, by insisting on cash payments up front for parts, ahead of the enginemaker's eventual closure.

Kuebler offered a different take, saying Diamond tried to purchase engines for cut-rate prices. His comments also implied Diamond had its own interests in seeing Thielert fold, due to the development of a competing piston diesel engine by Austro Engines, an Austrian subsidiary of Diamond.

In addition to Diamond, other manufacturers -- including Cessna, which suspended the introduction of its much-anticipated Centurion-powered 172TD -- suffered due to Thielert's woes... and Kuebler says the company is sorry for that.

"We very much regret that losses were incurred because of the company’s insolvency," Kuebler said. "I am pleased that we can now supply Thielert customers with engines and spare parts once again."

Meanwhile, Kuebler has commissioned an international auditing company with compiling figures required for the process of recruiting investors. This report is to be completed this week. Next week, Kuebler plans to approach "the more than fifty prospective buyers" about purchasing the company.

"An investor who is capable of securing the existence of the company on a long-term basis at the Lichtenstein and Altenburg locations and continues to develop the company's leading position on the market for diesel piston engines should get the nod," Kuebler said.

Kuebler stressed Thielert's operations will continue, even as the company enters full insolvency proceedings by the end of June.

FMI: www.thielert.com