In a completely unsurprising move, Eclipse customers have organized to represent their interests during the bankruptcy procedures. Related Story Before its bankruptcy filing, Eclipse delivered 259 aircraft Eclipse and taken an estimated $300 million in deposits. It declared assets between $100 million and $500 million and more than a $1 billion in debt when it filed for bankruptcy last month.
Simultaneous with its Chapter 11 filing, it announced the sale of its assets the assets of the long-troubled company to ETIRC, whose chair Roel Pieper, is developing a Russian assembly line, which has been called into doubt by existing U.S. technology transfer rules.
Luxembourg-based ETIRC Aviation S.a.r.l., is acquiring the company for a combination of cash, equity and debt. ETIRC Aviation, a principal driver of the VLJ industry in Europe, is currently Eclipse's largest shareholder. ETIRC Aviation's Chair Roel Pieper has been the acting CEO of Eclipse since July 2008 and has served as Eclipse's Chair since January 2008. The proposed sale is subject to competitive bidding through a public auction, which is expected to be completed and a sale finalized in January 2009.
Chaired by David Green, the Ad Hoc Customers Committee all owners and position holders of both the Eclipse 500 twin jet and the Eclipse 400 single-engine jet. "Eclipse customers hold contracts under which Eclipse is obligated to provide warranty coverage, upgrades, uninstalled equipment, maintenance coverage, subscription services, and future aircraft deliveries," said the committee in its press release. "In terms of dollar amount, customers are likely the largest constituency in Eclipse's Chapter 11 case."
Green, the president of the Eclipse 500 Owners Club, indicated the committee was underwritten by owners and position holders to provide a unified voice “to ensure that customers are fairly treated and that the Eclipse order book is preserved as one of the most valuable assets of Eclipse.” "Prospective purchasers of company assets must recognize that satisfied customers, many of whom have supported Eclipse for over eight years, can be the most effective marketing group for Eclipse aircraft," he added. "Finding a mutually beneficial outcome with the purchaser is our purpose; but all options are under consideration as we fulfill our mandate of protecting the interests of the customer group."
On the steering committee is first customer Jet-Alliance. "Whoever the ultimate buyer of the company assets is – whether it is ETIRC Aviation or another candidate buyer – it’s in the customer group's interest that the company be successful and profitable," said Randall Sanada, chair of Westlake Village, Calif.-based Jet-Alliance Inc. who added that the main is keeping the company out of Chapter 7 liquidation. AP reported the group talked with prospective purchaser and current Eclipse Chair Roel Pieper and expects to issue a letter to as many as 800 customers to join the nine-member steering committee.
The group can be reached by e-mail Nanette Metz or Randall Sanada at info@JetAlliance.com, or by calling (805) 409-0426.