Despite recently filing for Chapter 11 bankruptcy protection, One Aviation plans to continue day-to-day operations according to a news release issued yesterday. One Aviation Corporation, the parent organization of Eclipse Aerospace and Kestrel Aircraft, says the company entered into a consensual restructuring with support from 100% of its voting first lien lenders. Part of the restructuring includes an influx of fresh capital that will help the company continue regular operations. This company restructuring, following reductions in staff one year ago means the next six months will be critical to One Aviation’s success. One Aviation’s Board of Directors, as well as its management team said they believe this new plan and transition will ensure the company has the financial strength required to support the business for long-term success.
One Aviation Files Chapter 11
Key Takeaways:
- One Aviation has filed for Chapter 11 bankruptcy but intends to continue day-to-day operations and development of new aircraft like the EA700.
- The company entered a consensual restructuring agreement with 100% of its first lien lenders, securing fresh capital to support long-term financial strength.
- This restructuring follows previous staff reductions and aims to ensure the company can continue providing service and maintenance for its existing fleet.
- One Aviation faces significant financial challenges, with assets between $10M-$50M and liabilities between $100M-$500M.
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