Saviour Emivest looks for salvation

Washington DC
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Emivest Aerospace, a UAE-based company that bought 80% of the assets of struggling Sino-Swearingen Aviation in 2008 with the hopes of revitalising the company's lone project, the SJ30 business jet, is now searching for a saviour of its own.

The company filed for Chapter 11 bankruptcy protection in the USA on 20 October and has asked the courts to prevent utility companies from turning off services to its San Antonio and West Virginia production facilities.

Four SJ30s have been built and delivered to date, two by Emivest in 2009 and two by the former company. The company at one point claimed 302 orders for the Williams International-powered twinjet, most recently priced at $7.25 million.

emivest sj30 mark donaghue
 © Mark Donaghue

An additional three to four aircraft were on the production line when the company filed the papers, the result of a dearth of sales and an aggregate debt of more than $2 million. Emivest has also left the European Aviation Safety Agency in a bind, as it had owed the regulatory close to $1 million in an ongoing European certification effort.

The company is asking the courts to allow it to secure debtor-in-possession financing of up to $4 million from two sources, including Counsel RB Capital, a company that buys distressed companies in the USA and Canada.