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Flight Design insolvency

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https://www.unternehmensregister.de/ureg/result.html;jsessionid=97491BFA54C81D35A5CE1728887C5673.web03-1?submitaction=showDocument&id=16924759

 

In dem Insolvenzverfahren über das Vermögen der Flight - Design - GmbH
 Flugsportgeräte, vertreten durch die Geschäftsführer Herrn Matthias Betsch, Herrn
 Daniel Günther und Herrn Christian Wenger, Schmiedestraße 2, 15745 Wildau,
 (Registergericht: Dresden HRB 32961), Verfahrensbevollmächtigte: Rechtsanwälte
 Andreas Wähnert, Friedrichstraße 204, 10117 Berlin,
ist heute, am 15.02.2016, um 12.50 Uhr Rechtsanwalt Knut Rebholz,
Gerichtsplatz 7, 03046 Cottbus, zum vorläufigen Insolvenzverwalter bestellt worden
 und ein Zustimmungsvorbehalt angeordnet worden (§§ 21 Abs. 2 Nr. 2, 22 InsO).
Rechtsmittelbelehrung:
Gegen diesen Beschluss ist die sofortige Beschwerde gem. § 4 InsO, § 569 ZPO binnen
 einer Notfrist von zwei Wochen zulässig. Die Notfrist beginnt spätestens zwei Tage
 nach der unter www.insolvenzbekanntmachungen.de erfolgten öffentlichen
 Bekanntmachung. Bei einer früheren Zustellung ist dieser Zeitpunkt maßgebend für den
 Beginn der Beschwerdefrist. Die Beschwerde ist bei dem Amtsgericht Cottbus,
 Gerichtsplatz 2, 03046 Cottbus, oder bei Verfahren, die vor dem 01.03.2012 beantragt
 worden sind, auch beim Landgericht Cottbus, Gerichtsstraße 3-4, 03046 Cottbus,
 einzulegen. Die Beschwerdeschrift muss die Bezeichnung der angefochtenen Entscheidung
 sowie die Erklärung enthalten, dass Beschwerde gegen diese Entscheidung eingelegt
 werde. Die sofortige Beschwerde kann schriftlich, durch Erklärung zu Protokoll der
 Geschäftsstelle oder in elektronischer Form mit einer qualifizierten elektronischen
 Signatur eingelegt werden (für Einzelheiten: www.erv.brandenburg.de)
 Amtsgericht Cottbus, 15.02.2016, 63 IN 73/16

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I'm not sure how German law works in regards to the types of bankruptcy proceedings, but I have seen it used to restructure a company in the US for debt management. Let's see what happens.

 

Still: it doesn't mean we're abandoned. Abandoned happens when the company shuts down and nobody picks up the type data. I bet that Taiwan company would snatch it up in a heartbeat if it was offered up for sale.

 

Usually, insolvency allows for a company to try again without leaving creditors on the hook for everything, while being watched closely by the courts if there is further failure to meet obligations.

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the insolvency proceedings over the assets of Flight - Design - GmbH

 Flugsportgeräte, represented by the managing director Mr. Matthias Betsch, Mr.

 Daniel Gunther and Mr Christian Wenger, Schmiedestraße 2, 15745 Wildau,

 (Register Court: Dresden HRB 32961), processes represented by

 Andreas Wähnert, Friedrichstrasse 204, 10117 Berlin,

Today, on 02.15.2016, at 12.50 pm lawyer Knut Rebholz,

Court No. 7, 03046 Cottbus, has been appointed as the temporary insolvency

 and a reservation of consent has been arranged (§§ 21 para. 2 no. 2, 22 InsO).

Right to appeal:

Against this decision may be appealed immediately gem. § 4 InsO, § 569 ZPO within

 a statutory period two weeks allowed. The statutory period begins at least two days

 after the successful under www.insolvenzbekanntmachungen.de public

 Bulletin. In an earlier notification of this date is decisive for the

 Beginning of the period for appeal. The complaint is at the Amtsgericht Cottbus,

 Court Square 2, 03046 Cottbus, or procedures that applied for before 01.03.2012

 were also at the District Court Cottbus, Court Street 3-4, 03046 Cottbus,

 insert. The notice of appeal must include the name of the contested decision

 and include a statement that protested against this decision

 will. The immediate appeal may in writing, by declaration to the protocol

 Office or in electronic form with a qualified electronic

 Signature are inserted (for details: www.erv.brandenburg.de)

 Amtsgericht Cottbus, 02/15/2016, 63 IN 73/16

 

via Google Translate app

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The great irony of being successful is that a company grows faster than it's cash flow and gets into trouble. I expect FD will reorganize and come out viable. Cessna went bankrupt in the past and is still around. When I read about slow deliveries, opening a new plant in China and designing a new plane I wondered if FD was biting off a bit much.

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This is the email I just received from the local dealer:


Dear Partners,
 
as you know, the last 4 years have been very difficult for Flight Design. A combination of events including delays with the 912iS, the investment required for Production Organization approval and the Russian invasion close to our factory in Ukrainehave all worked against our company.  
 
To account for this situation, Flight Design had broadened out into engineering services, primarily for a South Korean engineering firm and technology transfer for the CTLS series to AeroJones Aviation in Taiwan. The income from those projects, were used to greatly reduce our order backlog and AeroJones financed also separately the development of the C4.
Despite these efforts, we have had a few individuals that have threatened us if we didn’t follow their demands and have started also commercial court cases against us. This occurred during a very sensitive time when we were close to gaining the investment we needed.  As we cannot deliver all of the airplanes or pay everyone at once we understood that we had to act immediately in the interest of our creditors, customers, partners and employees.
 
We are officially notifying you that we have applied for a planned receivership which allows for reorganization of the company. During the time of reorganization, the court has appointed Mr. Knut Rebholz from Mönning -Partnerhttp://www.moenning-partner.comto be in managing the affairs of the company.
 
Despite the receivership we are glad to be able to continue technical support for our customers and dealers at: customer.care@flightdesign.com .We will soon be sending information to you to assist you in confirming your debt or claim as a creditor with the appointed receiver.
 
Sincerely,
Your Flight Design Team
 
 
 
Flight Design GmbH
Zum Tower 4
D-01917 Kamenz
Tel.: +49 (0)3578 / 37335 - 0
Fax: +49 (0)3578 / 37335 - 69
Web: www.flightdesign.com
Commercial Register: DresdenHRB 32961 VAT ID No.: DE 147857992
Board of Directors: Matthias Betsch(CEO)-Daniel Günther-Christian Wenger

 

I AM one of those individuals who not only threatened but DID sue Flight Design, after my order was not fullfilled in 3 years, although I had paid 100% of the order in advance. I have just been informed by my German lawyers, that this could also turn into a criminal case, since they knew for some time that they lack liquidity (which is is punishable under German law).

 

I don't wish them any bad for their future, but I have had it with this company and just want my money back!
 

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"Despite these efforts, we have had a few individuals that have threatened us if we didn’t follow their demands and have started also commercial court cases against us."

 

That speaks volumes as to part of the root cause of their problems.

 

Seeing your customers as the enemy is never a good sign.

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"Despite these efforts, we have had a few individuals that have threatened us if we didn’t follow their demands and have started also commercial court cases against us."

 

That speaks volumes as to part of the root cause of their problems.

 

Seeing your customers as the enemy is never a good sign.

 

I read the same line and thought "WTF?"  Why would you craft a letter where you cast your customers, whose money you have already taken, as unreasonable for wanting the actual product they paid for?

 

I love FD USA, but I do have some real concerns about FD Germany.

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Andy, do you think FD USA didn't know what was happening in Germany?  There's no way I can see it.

 

To some extent, they also played the same game as the Germans with shiny, glowing press releases as recently as last month, giving the impression of blue skies and smooth waters ahead, even though they knew the ship was sinking.

 

http://www.aviationpros.com/press_release/12154515/flight-design-confirms-approval-through-faa-audit

 

Now we have Roger cryptically implying that everything is going to be okay......

 

More to the story. Wait and see.

 

Come on guys - it's great to be polite and patient and discreet, but only up to a point.  When being nice causes us to shut our eyes to gross abuse that's going on right in front of us, it's time for straight talk, not niceties and cryptic statements.

 

So, come on Roger, tell us what we don't know - what more is there to this story?

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FD USA is a distributor. Independent of FD Germany.

 

Tom has some pull, but I doubt he is an insider.

 

Also, be careful about how much you read into posts on a public forum. I don't mean to disregard them outright, but it's only one small view.

 

Basically, what Roger and I are getting at, is it's really easy to miss a lot of information and easy to inadvertently fill in non-existent details when tensions are high. This is NOT to defend FD Germany... Just advising to keep speculation under control. Burying the company's reputation any further will only make things worse for everyone (seriously, it will harm every single FD aircraft owner). Let the lawyers and the justice system find the truth and take care of things. I have skin in the game too, but I don't see any gain in slamming them more.

 

I would agree though if anyone said don't put down any deposits until the dust clears. I know I wouldn't.

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Andy, do you think FD USA didn't know what was happening in Germany?  There's no way I can see it.

 

 

 

Knowledge and control are not the same thing.  You have knowledge of public corruption, maybe we should put you in jail.   ;)

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So, if FD Germany has stopped production then the supply to FD USA will effectively dry up?

 

I don't believe that FD USA had any new units to demo at Sebring, other than owners who volunteered their planes for display.

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Knowledge and control are not the same thing.  You have knowledge of public corruption, maybe we should put you in jail.   ;)

I think that analogy breaks down once we start talking about murder :P

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I think that analogy breaks down once we start talking about murder :P

 

Not really.  If my wife kills somebody and I know about it but didn't participate, I'm not criminally liable.  Even if I don't report it to police -- there is no duty to report a crime or do the police department's job for them.  You *might* be liable for obstruction or some other crime if you actively thwart an investigation, but simple non-reporting information is not a crime.

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Not a good situation, and if they owe you money I wouldn't hold my breath.  As a business owner, I've had three or four of my customers declare bankruptcy in the last five years, and I never saw a dime.  Unless you're a secured creditor, I'd be shocked if you got anything.

 

I'm guessing you can set aside all the side talk about Russia and war and investors, and narrow it down to the C4.  I'm betting they did not have any where near the cash to pull off that new plane.

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Having said that, I'm also guessing they or the new owners will come out of this fine.  It's a great airplane, and distribution and manufacturing channels in place.

 

In order to get there, some creditors will probably have to take some lumps.

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Are FD USA and FD Germany two separate companies?

 

Some have said deliveries are being made in USA but not in Europe.

My guess, is that it is a franchise, but I do not know for sure. Clearly this would be affected by U.S. and German laws. I would think FD USA is somewhat financially isolated from FD Germany, but of course they depend on the German parent Company to supply product. I would not be ,at all , surprised if FD USA is a bit sensitive about their actual business contract with FD. Germany, but maybe not. FD USA, in my experience, is a good company with very responsive and truly professional customer service.

 

Cheers

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Two possibly relevant, brief anecdotes...

 

1) I know I've mentioned, possibly in this thread, that the manufacturer of my Sky Arrow, 3i of Italy, got in a similar financial bind. Went through some sort of Italian reorganization, and were ultimately bought out by a larger firm, Magnaghi. Good news is that it did not seem like current owners were affected at all, and the transition went pretty seamlessly, at least for owners.

 

2) I don't know the details, but Eclipse had major problems, including a bankruptcy or something similar. A Cirrus owner, Mason Holland, managed to put together a buyout of their assets. Lots of financial hurt to position holders, but the new company is still shipping planes and supporting and upgrading earlier models.

 

Just saying that this may be a big opportunity for someone with the financial and organizational skills to purchase FD or its key assets and keep this desirable product extant. Too bad that none of the major players - Cirrus, Piper, Cessna, etc. seem to have any interest.

 

Just a thought...

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So, if FD Germany has stopped production then the supply to FD USA will effectively dry up?

 

I don't believe that FD USA had any new units to demo at Sebring, other than owners who volunteered their planes for display.

 

I think FD USA has always used dealer and customer airplane in their displays, with the exception of N860LS which was the first CTLS in the states.

They try to get aircraft that are located close to the show, instead of moving them across the country.

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"Just saying that this may be a big opportunity for someone with the financial and organizational skills to purchase FD or its key assets and keep this desirable product extant. Too bad that none of the major players - Cirrus, Piper, Cessna, etc. seem to have any interest."

 

Don't know what the economy of scales is , but it would be great if  FD USA bought them out. However I hope and expect FD Germany will go through this reorganization to become a better and stronger Co. If FD USA has some stockpiled air frames I would not hesitate in buying a new aircraft.

 

Cheers

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I think FD USA has always used dealer and customer airplane in their displays, with the exception of N860LS which was the first CTLS in the states.

They try to get aircraft that are located close to the show, instead of moving them across the country.

N365CT, on display at Sebring is my brother's aircraft. He was compensated very well for the loan. He is very happy for what they did for him.

 

Cheers

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