Jump to content

Flight Design insolvency


adevw

Recommended Posts

IrishAl. Yes, they do for an as-of-yet undetermined amount of time, but that is not for me to speculate upon.  That is the job of the receiver, Herr Rebholz to negotiate and for AJA and FDG to agree upon. There is good reason for both parties to cooperate and make it work for everyone.      

 

Thanks Tom for taking the time to keep the guys here informed...  Do you think Aerojones will eventually simply BE the company since they plan to also operate in Germany/Europe?  The C4 is clearly the future for the brand...is Lindig only planning to limit themselves to the SLSA only?  And the billion buck question...what is your opinion on the FAA and the part 23 rewrite...will Aerojones be able to get the C4 into production by the end of next year?

Link to comment
Share on other sites

  • Replies 454
  • Created
  • Last Reply

I wonder what all this means for the creditors ? Any likelihood of being paid ?  

 

Broadly speaking, in a bankruptcy, existing assets are seized and the proceeds are arbitrarily distributed among creditors.  

 

However this is not a bankruptcy, so all the assets and liabilities will have to be negotiated.  

 

FD's liabilities include those customers (creditors) who paid in advance for aircraft that were not received.

 

I am interested to know what kind of settlement is achieved in these cases.

Link to comment
Share on other sites

Tom clarified and illuminated the situation for the board so people will hopefully stop guessing and assuming the worst.   The disposition of debt and delivery obligations and the final re-organization is still under discussion.   There is nothing productive about continuing to guess and assume the worst.  All the answers will be made public in due course AFTER all parties are satisfied and the process closes.

Link to comment
Share on other sites

It would be hard or impossible not to think the worse if they have had $180,000 of your money for a few years.  All the parties will never be satisfied.  That's why they are bankrupt.

Yes , I can understand that. Keep in mind FDUSA is also a creditor.

 

Cheers

Link to comment
Share on other sites

It would be hard or impossible not to think the worse if they have had $180,000 of your money for a few years.  All the parties will never be satisfied.  That's why they are bankrupt.

 

For heaven's sake, read the posts - they're not bankrupt!  (See post 396.)

 

Once again I'd like to reiterate that many members of this forum are interested to see what the settlement will be, if any, for customers who prepaid.  

 

I hope some of you will let us know when everything is settled and it's appropriate to do so.

Link to comment
Share on other sites

That's a matter of semantics.  Tell that to the people who paid for an airplane and have nothing to show for it.

 

This is why Tom had to set the record straight.  Those who are engaging in wild speculation and arm waving are doing a disservice to the brand and to those attempting to find an amicable outcome.  The negotiations are still in process. 

Link to comment
Share on other sites

That's easy to say if they don't owe you a new airplane.  I wonder if they will all get or got their stock options paid in full.

 

Flight Design is not a public company.  No stock.  Again.  The proceeding is still ongoing...gotta wait to see how it resolves.

Link to comment
Share on other sites

Private companies have stock.   

 

Private companies can only issue shares to private investors and employees....NOT TO THE PUBLIC.  Stock Options are a form of compensation in lieu of cash and have little to no value unless the company goes public or the company buys the stock back higher than when issued.  The commentor may not have been aware that Flight Design is a private company and does not have shares in the public market.

Link to comment
Share on other sites

Private companies can only issue shares to private investors and employees....NOT TO THE PUBLIC. Stock Options are a form of compensation in lieu of cash and have little to no value unless the company goes public. The commentor may not have been aware that Flight Design is a private company and does not have shares in the public market.

Those with more experience know that this is not true. Some companies have private shares and pay dividends on those shares. Employees can purchase them if they so choose and the price varies based on demand. The majority is usually owned by a private board made up of the top share holders. This is called a private corporation.

What this has to do with FD we don't know now, do we?

Link to comment
Share on other sites

The stock has value if there is an agreed upon option for the stock in writing.  I speak from personal experience. I sold my stock and the company remained private. 

 

That can be true...but there is no evidence FD (a German company) has issued any such private stock or option to anyone.

Link to comment
Share on other sites

No, actually that <is> true as opposed to your assertion above. And, to quote myself, " What this has to do with FD we don't know..."

There is also no evidence FD (for some reason you decided people here needed to be told it is a German company) hasn't issued any such private stock or option to anyone either, is there?

Link to comment
Share on other sites

I have not followed this subject for quite a while so plead ignorance and apologize if the answer is somewhere in the 22 pages of posting.  Simple questions, are parts available for the CTSW's both FD specific for the air frame and Rotax engine? If so, from what source and average time - understand it depends on what is needed - from ordering to shipping?

Tom

Boise

Link to comment
Share on other sites

In order to keep the fleet in the air, FD had to assure the US and European Govt agencies that oversee aviation that parts would be available.  Delivery time seems to be variable, depending on part and locations.  US owners are getting parts, as FDUSA has warehoused at least some parts.  I believe AeroJones is now responsible for producing parts.  

 

Rotax is separate for the most part.

Link to comment
Share on other sites

I have not followed this subject for quite a while so plead ignorance and apologize if the answer is somewhere in the 22 pages of posting.  Simple questions, are parts available for the CTSW's both FD specific for the air frame and Rotax engine? If so, from what source and average time - understand it depends on what is needed - from ordering to shipping?

Tom

Boise

 

All Rotax parts are available from Rotax distributors. Some airframe parts are available from alternate sources. Flight Design specific parts are available from Flight Design USA if they have stock. According to Tom P's post they do have a big parts order coming.

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.


×
×
  • Create New...