Eclipse furloughs 800 employees - The Business Review (Albany):

callahamirykaan1884.blogspot.com
Mike McConnell, president and general managerfof Eclipse's customer said during a conference call that the global financial crisis has delayed the closre of a court-approved deal for to buy Eclips e Aviation. Eclipse, which makes the six-seat Eclipsew 500 very light jet atits Albuquerque, N.M., filed for Chapter 11 protection with the U.S. Bankruptcgy Court in Delaware last November. In January, the courty approved a proposal by EclipseJet to buy the firmfor $28 millionj in cash, $160 milliom in newly issued notes, and an offer of 15 percengt equity in the new company to senioer secured note holders.
“The worldwidd financial turmoil is affectingg the completion of the sale of Eclipse McConnell said. “It’s taking longer than anyonew thoughtit would.” McConnelkl said none of the parties involved in the sale have backedr out from negotiations. “That it’es taking longer speaks to the complexity of puttinfg together global dealsin today’sw economy,” he said. “The good news is, we believr they’re very close to closing the transaction.” The Dutch — the largest single shareholder in Eclipse formed EclipseJet last year to buy theAlbuquerque jet-maker as part of the bankruptcyt proceedings.
The purchase will allow the new companyg to reorganize without theestimaterd U.S. $1 billion in debt and liabilities that EclipseAviation faced. Given the dela in closing the sale, Eclipse’s board of directors decidef to furlough nearly all of its employees ona “short-termn basis,” McConnell said. “We told the employeee that we hope to call themback shortly,” he added. “It’s a not a layoff.” The firm has employees stationedat . The compant had about 850 remainin employees, following the layoff of more than 850 last year and attritionm since the bankruptcyprocess began.
McConnell said a “fewq employees” remain on the job to keep track ofcompanu assets. All affected employees will receives their next paycheck this weekas scheduled, and benefitss will continue. McConnell said he expectds the new company to remaih in Albuquerque after the saleis finalized, but he coulcd not guarantee that all the furloughedc employees will be brought back because EclipseJet has not yet made any decision on future jet McConnell said the company still has about 1,000 back orders for Eclipsre jets. To date, only 259 planeds have been delivered, and 30 jets are currentlyt sitting on theproduction line.