Eclipse Aviation today filed for Chapter 11 bankruptcy protection but simultaneously announced an offer for the sale of its assets for a combination of cash, equity and debt to an affiliate of Etirc Aviation, its largest shareholder.
The company says the proposed sale will be subject to a competitive bidding process in a public auction, which it expects to complete in January 2009.
Meanwhile, Eclipse is asking the bankruptcy court in Delaware to approve a plan whereby a group of existing shareholders and note holders will provide debtor-in-possession interim financing to allow "normal business operations through the closing of the sale." The interim financing "along with other relief requested from the Court" will allow the company to pay its employee wages and benefits as well as service customer aircraft and continue building new aircraft.
Eclipse also announced today that Peg Billson, president and general manager of the company's manufacturing division, will voluntarily leave the company "to pursue other career opportunities."