Two bidders are negotiating with Fairchild Dornier's administrator to purchase the bankrupt German manufacturer, but neither had produced proof late last week that they had funds to complete the €1 billion ($982 million) deal.

One of the bidders, Sibirsky Aluminium teamed with Irkutsk Aircraft Production (IAPO) of Russia, has been in talks with administrator Eberhard Braun for some time, but a new candidate, Swiss registered investor group Aviation Finance Consulting (AFC) emerged last week.

AFC's backers are not known but are believed to consist of investors based in Liechtenstein, Switzerland and the Middle East, as well as ex-Fairchild Dornier managers. The group plans to replace current Fairchild Dornier chief executive Thomas Brandt with ex-Augsburg Airways chief executive Olaf Dlugi, while former Dornier chief executive Heider Heydrich would take over as chief operating officer. Dlugi confirms he is the designated chief executive, but declines to comment further.

The Russian group was due to produce proof of funds by the end of last week, but at noon on 11 October, Braun was still waiting. If a deal is not secured, the company will be sold piecemeal.

Source: Flight International