KAISER AEROSPACE AND Teledyne Continental are still in talks with Piper Aircraft and its creditors after the bankruptcy court gave both sides until 3 February to reach agreement on how the aircraft manufacturer will emerge from Chapter 11.
Piper's agreed plan for its creditors to take control of the company in a debt-for-equity swap was thrown into disarray when Kaiser and Teledyne submitted a rival $70 million bid for the manufacturer's assets (Flight International, 21 December, 1994-3 January, 1995).
Kaiser says that it has been pursuing Piper for two years, as part of a plan to diversify from defence contracting, and formed Piper International to acquire the company's assets.
Kaiser reached an agreement with Teledyne in September 1994, under which the engine manufacturer will take a stake in Piper International in return for forgoing its $6 million claim against the aircraft company. To sweeten its bid, Kaiser is also offering creditors a 22% stake in Piper International.
Under the bankruptcy court's revised deadline, the Kaiser team has until 3 February to continue talks. Piper shareholders will then be offered the choice of the debt-for-equity swap or an auction at which Kaiser will bid against other interested parties for Piper's asset .
Source: Flight International