Eclipse Aviation In Cash Conservation Mode

AINalerts » August 7, 2008
August 7, 2008, 12:38 PM

When VLJ manufacturer Eclipse Aviation announced early last week that it had received “first funds in a new round of financing” that hinged on the resignation of founder Vern Raburn, observers generally took that to mean that new money was flowing into the company. An Eclipse spokeswoman said that the financing round is still ongoing, and AIN has learned that some airplane position holders who have canceled their orders are still waiting for a refund of their deposit, in some cases $150,000. “We have been briefly delayed in tendering customer refunds,” the spokeswoman told AIN. “All refunds are expected to be issued shortly following the close of the financing round.” A letter sent late last week by vice president of customer support John Ricciardelli notifying Eclipse 500 customers of a six-month delay in Avio NG and performance modifications further indicated that the company is conserving cash. “We must balance our financial health with our modification schedules over the next few months,” he wrote. The Eclipse spokeswoman wouldn’t disclose how many orders have been canceled, how much money the financing round involves or when the financing round will “close.” She noted that customers have until the end of this month to cancel their order and request a refund.

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