EclipseJet Aviation International Given Verbal OK To Purchase Assets

ANN REALTIME REPORTING 01.20.09 1500 MST: Sold. Moments ago, US Bankruptcy Court Judge Mary Walrath "verbally approved" the sale of the assets of Eclipse Aviation to EclipseJet Aviation International, a subsidiary of ETIRC Aviation.

Walrath reportedly approved EclipseJet's bid of $28 million in cash, plus promissory notes and equity for the assets of Eclipse Aviation. An expected final closing date on the transaction was not announced... though an Eclipse spokesperson gave ANN a rough estimate of around 2-3 weeks.

In the meantime, Eclipse plans to continue current operations until the sale is finalized.

Questions left unanswered in Eclipse's announcement of the sale include when production of the Eclipse 500 will resume at an appreciable rate; whether deposit holders whose aircraft are currently on the assembly line, unfinished, will now have to pay more to take delivery of their planes; and what amount depositors on later serial numbers will now have to pay to take delivery of their planes.

A hearing planned for later this week may determine the answers to those questions, the spokesperson said.

"EclipseJet has had some conversations with key suppliers, as part of the stalking-horse process," the spokesperson said. "I don't know details -- Eclipse Aviation was not privy to those talks. Ramping up production will be a function of those conversations which have already taken place, and talks still to take place."

A question on the minds of many in New Mexico is whether the new company plans to stay in Albuquerque. "It's the expectation of Eclipse Aviation and our understanding from EclipseJet that production will stay in Albuquerque," the spokesperson asserted. "All indications are the new company does intend to remain here."

EclipseJet is an affiliate of Luxembourg-based ETIRC Aviation, the largest Eclipse shareholder. ETIRC Aviation Chairman Roel Pieper became the acting CEO of Eclipse in July 2008, when company founder Vern Raburn was ousted on the first day of AirVenture 2008.

Eclipse Aviation filed for Chapter 11 protection in the United States Bankruptcy Court for the District of Delaware in November 2008. Since then, Eclipse has continued operations with debtor-in-possession.

ANN will have more information on this developing story as it becomes available.

FMI: www.eclipseaviation.com