Grob’s German Subsidiary Files for Insolvency

 - November 4, 2008, 11:21 AM

Germany-based Grob Aerospace GmbH, which was forced to enter the preliminary insolvency process on August 18 after its main source of capital suddenly withdrew financial support for the new SPn light business jet program, on Thursday officially filed for insolvency and laid off most of its staff. The insolvency relates purely to Grob’s German subsidiary, which employs some 500 people–including 380 permanent staff–at its Tussenhausen-Mattsies factory. Since entering preliminary insolvency “all of our efforts have been toward researching a new investor,” Grob CEO Niall Olver said. “Despite a number of ongoing promising negotiations with various parties, we have unfortunately not been able to secure a new investor within the time frame allowed by German law.” According to Olver, a “core team” will remain in Mattsies to keep business activities running on a minimal scale, while the remaining management team of Grob Aerospace GmbH, together with Grob Aerospace AG in Zurich, continues discussions with potential investors. Swiss-based Grob AG is still solvent, as is its new U.S. subsidiary in Portsmouth, N.H. “We hope that a new investor will get on board and will be in a position to rehire most of the employees,” Olver said. “We will keep you informed about any further development.”