A Federal Bankruptcy Judge Sets August 20th For The Sale

A Federal Bankruptcy Judge says the assets of Eclipse Aviation will be auctioned on August 20th, with the sale likely to go to Eclipse Aerospace for $40 million.

A Friday deadline has been set for competitive bids to be submitted for the company. To be considered competitive, a buyer would have to offer $42 million, $2 million more than Eclipse Aerospace has on the table.

A report in Airport Business says if they are successful, the new owners hope to have the Albuquerque facility re-opened by the end of August. Mason Holland, head of South Carolina based Eclipse Aerospace, says the company would begin by servicing the existing fleet of 259 Very Light Jets, and getting slowly back into production. Holland said he expects the plant will employ a few hundred workers when production resumes, though he did not set a timetable for that to happen.

Albuquerque Mayor Martin Chavez told the publication "We have no indication there's anyone out there looking, although there's the possibility of foreign interest. Don't say it's over till it's over, but I think the community has snatched victory from the jaws of defeat."

Court documents indicate the competitive bid process is part of the sales agreement. In addition to the higher bid, any competitive bidder would also be required to place a $5 million deposit to assume control of the company. Chavez said that's highly unlikely given the current state of the economy.

FMI: www.eclipseaviation.com