NBAA Convention News

One Aviation Enters Chapter 11 Restructuring

 - October 10, 2018, 11:27 AM
One Aviation has voluntarily filed for Chapter 11 bankruptcy as part of a "consensual restructuring" arrangement that includes a capital infusion to maintain existing operations. The Albuquerque, New Mexico-base company intends to maintain support for in-service Eclipse 500/550s and continue development of the follow-on Eclipse 700. (Photo: One Aviation)

One Aviation announced today that it has "entered into a consensual restructuring" arrangement that includes a capital infusion to maintain existing operations, as well as a voluntary Chapter 11 bankruptcy filing. The move comes four months after reaching a last-minute agreement to settle overdue rent on its facilities in Albuquerque, New Mexico, and continue support for its Eclipse 500/550 very light jet.

"The path to this outcome has been long and difficult," said One Aviation CEO Alan Klapmeier. "The management team appreciates the generous support it has received from its employees, service providers, suppliers, and customers throughout the process."

One Aviation—formed through the 2015 merger of Eclipse Aerospace and Kestrel Aircraft—reiterated the company intends to continue providing service, maintenance, and upgrades for the existing fleet of Eclipse 500/550s throughout the restructuring process, while also furthering development of the larger Eclipse 700.

The company first acknowledged a probable Chapter 11 filing earlier this year in documents obtained by AIN outlining negotiations with Albuquerque officials to allow Eclipse to remain at the city’s airport. In May, Eclipse agreed to pay the city more than $1 million to bring the company current, with the money fronted by Citiking International US LLC.

Wyse Advisors managing partner Mike Wyse, who also serves as chairman of One Aviation, is the company’s primary consultant through the Chapter 11 process.