Aviation Technology Group says it is negotiating a possible sale or majority buy-out of the very light jet developer, which suspended work on its Javelin two-seater in December after failing to secure funding.

In a statement, ATG says its board "has continued to engage in discussions with its stragetic partner [Israel Aerospace Industries] and various financial institutions" on ways to continue operations in the short- and long-term.

Whereas fellow Denver, Colorado-based VLJ developer Adam Aircraft has filed for bankruptcy liquidation, ATG remains hopeful of continuing operations. The company says it has succeeded in renegotiating both credit and teaming agreements.

"Mutiple teams are pursuing a list of potential buyers," says ATG, which plans to ask for best and final offers "within the next few weeks". Investment firm Patriarch Partners, which owns MD Helicopters, has said it is looking to buy a VLJ manufacturer.

Source: Flight International