When no qualified bidders emerged last week, the scheduled auction for the assets of Eclipse Aviation was canceled by bankruptcy court judge Mary Walrath. That cleared the way for EclipseJet Aviation International, a subsidiary of Luxembourg-based ETIRC Aviation, to acquire the company. The deal was approved verbally by the judge on Tuesday and signed off yesterday. According to an AP story, the buyer plans to pay $28 million in cash, issue $160 million in bonds and put up some $7.5 million to “wind down the business” of Albuquerque, New Mexico-based Eclipse Aviation, which will change its name to EclipseJet International when the deal closes-estimated to be in two or three weeks. Current plans call for the New Mexico factory to remain in operation, joined by a new factory in Ulyanovsk, Russia, scheduled to open next year. What this all means for current Eclipse deposit holders and vendors is not totally clear. Though Randall Sanada, a member of the Customer Steering Committee, called this week’s developments “a good thing,” he also said that all aspects of all contracts could not possibly be honored by the new ownership.
Auction Canceled; ETIRC Unit Wins Eclipse Sweepstakes
Key Takeaways:
- Eclipse Aviation's assets were acquired by EclipseJet Aviation International, a subsidiary of ETIRC Aviation, after its scheduled auction was canceled due to a lack of qualified bidders.
- The deal, approved by a bankruptcy court judge, involves $28 million in cash, $160 million in bonds, and $7.5 million for winding down the current business.
- The company will be renamed EclipseJet International, maintaining its New Mexico factory and planning to open a new factory in Russia next year.
- The future for current Eclipse deposit holders and vendors is uncertain, with expectations that not all existing contracts will be fully honored by the new ownership.
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