Eclipse Aviation Files Chapter 11
For the last few years, Eclipse Aviation was to seen to be the foundation of a whole new world of air taxis and personal jets with their Eclipse 550 aircraft. Times have changed and this week, Eclipse filed for federal bankruptcy-court protection. The company which is based in Albuquerque, New Mexico, struggled to make payroll earlier this month. The Wall Street Journal reports that ETIRC Aviation, which holds nearly 65% of the company's shares, will endeavor to continue manufacturing operations as it moves to acquire Eclipse's assets.
Eclipse still has a backlog of over 2,000 planes on order. The company may slow down production on order to get solvent as soon as possible. The planes sell for around $1.5 million each. Eclipse joins other companies that are planning layoffs and slowing production in order to cope with the dramatic economic shifts.
Reader Comments (Page 1 of 1)
Ryan Nov 26th 2008 10:52PM
Actually Eclipse lost 1,200 of its orders when DayJet went under and many of the 800 or so remaining deposit holders have requested refunds. Unfortunately for them there is no money to refund their deposits.