According to the Associated Press, troubled Eclipse Aviation Corp. will not be put up for public auction this week. The court did not receive any qualified bids to purchase the Albuquerque-based very light jet manufacturer by the Tuesday deadline.
Dan Guyder, a partner with Eclipse’s law firm, Allen & Overy LLP in New York, said that two committees of security note holders and unsecured creditors determined there were no qualified bids for the company, the Associated Press said.
That paves the way for Eclipse’s largest shareholder, the Luxembourg-based ETIRC Aviation, to move forward with plans to purchase the company.
Guyder says ETIRC affiliate Eclipse Jet Aviation International Inc. plans to pay $28 million in cash, issue $160 million in new notes and offer 15% equity in the company to senior secured note holders. according to the report.
