Eclipse could convert to Chapter 7
Bloggers on the Internet site Eclipse Aviation Critic NG first reported the filing in a posting. Chap. 7 is a “straight” bankruptcy involving an appointed trustee to sell all assets by auction or other means to pay creditors and trustees fees.
Mike McConnell, president and general manager of Eclipse’s customer division, confirmed the news in a telephone interview with the New Mexico Business Weekly, a sister publication of The Business Review. But he declined to comment further.
The blog reported that the motion would give senior note holders effective control of Eclipse’s assets.
Albuquerque, N.M.-based Eclipse, which makes the 6-seat Eclipse 500 very light jet, filed for Chapter 11 protection with the U need a personal loan with bad credit.S. Bankruptcy Court in Delaware last November. Chap. 11 is a process that allows a business to gain temporary relief from paying debts in order to reorganize. The debtor remains in control of the business during the bankruptcy, and the business continues to function.
In January, the court approved a proposal by EclipseJet Aviation International Inc. to buy Eclipse for $28 million in cash, $160 million in newly issued notes, and an offer of 15 percent equity in the newly formed company to senior secured note holders.
Last week, however, Eclipse furloughed its remaining 800 employees in Albuquerque and 24 at Albany International Airport because negotiations over the company’s sale were taking longer than expected.