US jet company Eclipse files for liquidation
Struggling jet maker Eclipse Aviation has sustained another setback as senior noteholders filed a motion in federal court to convert the company's bankruptcy status to liquidation proceedings.
By Agencies |
NEW MEXICO: Struggling jet maker Eclipse Aviation has sustained another setback as senior noteholders filed a motion in federal court to convert the company's bankruptcy status to liquidation proceedings.
Eclipse spokesman Keith Spondike confirmed Tuesday's filing but cautioned the effort remains subject to a judge's approval.
The company's new request to proceed under Chapter 7 of the U.S. bankruptcy code would allow it to operate under the direction of a court trustee until the matter is resolved. If Eclipse can settle with creditors, it might not have to be liquidated.
Eclipse had sought bankruptcy protection from creditors in November.
The noteholders' decision suggests Eclipse hasn't been able to complete its planned $188 million sale to European-based EclipseJet Aviation International Inc., an affiliate of ETIRC Aviation.
``Something obviously changed, but I don't have the details,'' said Spondike, Eclipse's director of marketing and communications.
Last week, Eclipse sent 800 employees home on unpaid furloughs but expressed confidence the workers could return when the sale is completed. The change in the bankruptcy filing raises new uncertainty.
Spondike confirmed a skeleton crew of about 50 unpaid workers remains at the Albuquerque site.
Until recently, the company had produced its six-seat Eclipse 500 light jet at the Albuquerque facility, which was touted by New Mexico politicians and business leaders as an economic boon.
It's possible another group could organize a bid to buy the company's assets under that scenario, including its factory, hangars and equipment. However, it's unlikely any furloughed employees would return if that happens.
Eclipse spokesman Keith Spondike confirmed Tuesday's filing but cautioned the effort remains subject to a judge's approval.
The company's new request to proceed under Chapter 7 of the U.S. bankruptcy code would allow it to operate under the direction of a court trustee until the matter is resolved. If Eclipse can settle with creditors, it might not have to be liquidated.
Eclipse had sought bankruptcy protection from creditors in November.
The noteholders' decision suggests Eclipse hasn't been able to complete its planned $188 million sale to European-based EclipseJet Aviation International Inc., an affiliate of ETIRC Aviation.
``Something obviously changed, but I don't have the details,'' said Spondike, Eclipse's director of marketing and communications.
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Last week, Eclipse sent 800 employees home on unpaid furloughs but expressed confidence the workers could return when the sale is completed. The change in the bankruptcy filing raises new uncertainty.
Spondike confirmed a skeleton crew of about 50 unpaid workers remains at the Albuquerque site.
Until recently, the company had produced its six-seat Eclipse 500 light jet at the Albuquerque facility, which was touted by New Mexico politicians and business leaders as an economic boon.
It's possible another group could organize a bid to buy the company's assets under that scenario, including its factory, hangars and equipment. However, it's unlikely any furloughed employees would return if that happens.
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