Aircraft

German powerplant maker Thielert Aircraft Engines has filed for insolvency and sacked its founder and chief executive after a financial crisis centred on incorrect accounting.

The company, based near Chemnitz, builds the Centurion piston engine for light aircraft and unmanned air vehicles.

Earlier this month the company's parent, Thielert, admitted it faced an "urgent liquidity crisis", and needed to find euro14 million ($22 million), attributing the problem to engine delivery delays and investments made. But it followed a Hamburg district court's ruling null the company's accounts from 2003-05. Thielert says: "It is to be assumed that the annual financial statements are probably incorrect and possibly void."

Hamburg criminal investigation authorities have opened an inquiry into the management board. As a result of information received, the company has sacked chief executive Frank Thielert - who founded the firm in 1989 - as well as chief financial officer Roswitha Grosser.

Investors who had earlier signalled willingness to support a euro24 million restructuring package have since scrapped the plan, forcing the insolvency filing. The company states that its continuation can only be ensured through investor support for a restructuring.