Financially troubled agricultural and utility aircraft maker Ayres is negotiating with creditors to stave off liquidation. Founder and president Fred Ayres predicts that it will be "a couple of months" before the company's future is settled.
"We are still negotiating as to whether we are going to bring Ayres out of Chapter 11 [bankruptcy protection] with a re-organisation plan and continue with what we have, sell the assets and/or sell the company," he says.
Georgia-based Ayres sought bankruptcy protection in November amid mounting losses attributed to development costs of the Loadmaster LM200, a twin-turboshaft utility aircraft, and from the failure of its Czech Republic-based sister company LET. GATX stepped in to provide financing while Ayres searched for $80 million to recapitalise the company.
"We are working with GATX to find new investors, and we need new money to complete certification for the Loadmaster," he says. The almost completed first aircraft, currently minus the LHTEC CTP800-4T engine, could make its first flight about eight months "after coming out of Chapter 11".
Integration work on the jointly developed Honeywell, Rolls-Royce powerplant, GKN Westland gearbox and other propulsion elements "has wound right down", admits Ayres.
He maintains market interest in the LM200 remains high and Fedex "is still on board as launch customer", with 75 firm orders and 275 options. Even assuming a release from Chapter 11 next month, however, first flight would not be until the second quarter of 2002, pushing first deliveries to early 2004 - five years behind schedule.
Source: Flight International
