Court approves sale of Eclipse Aviation’s assets to EclipseJet Aviation International

The sale of the assets of Eclipse Aviation, based in Albuquerque, New Mexico, the United States, to EclipseJet Aviation International Incorporated, has been approved by a US Bankruptcy Court.

The buyer, an affiliate company of the ETIRC Aviation, a company based in Luxembourg, is the largest single shareholder in Eclipse Aviation. Roel Pieper, chairman of ETIRC Aviation, is the acting CEO of Eclipse Aviation.

Judge Mary Walrath of the US Bankruptcy Court in Delaware allowed the sale of Eclipse Aviation‘s assets to EclipseJet Aviation International, following Eclipse Aviation filing for Chapter 11 protection in November 2008 and seeking court approval for EclipseJet Aviation International to buy the assets of Eclipse Aviation for a combination of cash, equity and debt.

Thought the sale was subject to a competitive bid, the court received no other qualified offers as of the deadline of January 13, 2009. Following this, on January 20, 2009, the Bankruptcy Court allowed EclipseJet Aviation International to buy Eclipse Aviation.

Eclipse Aviation Corporation manufactures the six-seat Eclipse 500 very light jets (VLJs) and is in the process of developing the Eclipse 400 very light jets. The company has a factory service centre at the Albany International Airport.

ETIRC Aviation provides very light jet (VLJ) services to airlines and other aviation companies, including jet taxi operators. In addition to its headquarters in Luxembourg, ETIRC Aviation has offices in Moscow, Istanbul and Cyprus.

In a statement, Eclipse Aviation said the sale was yet to close and “until that happens, no details are available about the final resolution of unsecured liabilities.”

The buyer will pay $28 million in cash for Eclipse Aviation, in addition to $160 million in newly issued notes and an offer of 15% equity in the new firm to senior secured note holders, the statement added.

Eclipse Aviation, in its bankruptcy filing, had listed over $1 billion in unsecured claims and equity, including $13 million held by the New Mexico State Investment Council.

According to the statement, Bankruptcy Court Judge Mary Walrath is expected to rule on some unresolved objections made by parties in court once she approves all the administrative paperwork. The unresolved objections include a request by 24 customers of Eclipse Aviation with outstanding deposits on jets that planes that are at present on the assembly floor be declared as theirs, instead of considering them as assets to be transferred to the buyer.