U.S. judge Randall Dunn on Friday ruled that China Aviation Industry General Aircraft Co. (CAIGAC) will be the winning bidder for the assets of bankrupt turboprop kit manufacturer Epic Air, but only if it licenses bidder LT Builders Group to manufacture Epics in Bend, Ore., according to a report in The Oregonian, which has been attending the Epic hearings. CAIGAC bid $4.3 million, but if the Chinese company and LT Builders can’t come to an agreement, then Harlow Aerostructures is next in line with a bid of $4 million. Rich Lucibella, who owns one of the partially built Epic LT turboprops currently locked in Epic’s facilities in Bend, told AIN, “I thought it was a brilliant solution to the issue.” He said Judge Dunn’s “original ruling required a [Chapter 11, Section] 363 auction of assets, with a promise that he’d choose the best bidder or plan. In the end he rejected all of the bids and the LT Builders’ plan and crafted yet a fourth ‘bid’ of his own.” According to David Criswell, attorney for Chapter 11 trustee Kenneth Eiler, Dunn’s ruling on the plan for CAICAG and LT Builders to work together or on the final winning bidder is expected tomorrow.
Epic Air Asset Sale Decision Expected Tomorrow
- April 6, 2010, 12:10 PM