- The creditors meeting on August 8, 2016 has agreed on a combined cooperative offer of the Lindig group Eisenach / Germany and Aero Jones Taichung /Taiwan
- The Lindig group will take over Flight Design under an insolvency plan procedure.
- Aero Jones in an asset-only purchase takes ownership of the C4 project and CT business, where the supply of spare parts and support for all models is ensured.
Knut Rebholz, receiver of Flight Design, will according to the agreement of the parties, create an insolvency plan and will prepare a parallel an asset deal with Aero Jones. The insolvency plan will be then submitted to the court and the creditors. The termination of the insolvency proceedings is scheduled for no later than Autumn 2016.
“The creditors with their decision for the new investors have paved the way for a continuation of the core business as well as the production and support of established aircraft and completion of new developments,” says receiver Knut Rebholz.
Precondition for the successful restructuring was that the receiver Rebholz was able to continue the business operations of the company since application and to continue the necessary licenses and regulatory approvals.
An important step was it to agree with customers on a way to finance their orders, which existed already before the insolvency. “The negotiations for this were, among other reasons, very complex, because the customers of Flight Design are from all over the world and are not familiar with the German Insolvency Code” says Rebholz. After the first agreements were reached, end of August / September, according the situation now, the first aircraft will be delivered to customers.
The customers whose aircraft orders were not met at the time of opening of insolvency proceedings-can confirm their orders to the conditions offered by the insolvency administrator until 30.09.2016.
The management of Flight Design has made in mid-February 2016 an application for insolvency after an international customer had not settled a bill of over seven figures. This lead the company into a liquidity squeeze. The management sought alternative financing to bridge the time until receipt of the outstanding payments. This was not then successful. The outcome of the current agreements should allow the company and products to go forward, support and approvals to be continued and creditors to be fairly compensated.
Flight Design, based in Wildau with a production site in Kamenz claims to be the world leader in the production of non-complex light aircraft. The company develops and manufactures aircraft in Wildau near Berlin, in Kamenz near Dresden and in Ukraine. The company is active in 48 markets. By licensing agreements, the planes are manufactured internationally also in Taiwan/China.
Flight Design recently had an annual turnover of about 11 million euros and in Germany almost 20 employees, mostly highly skilled engineers and technicians and about 100 workers in Ukraine. Since the company was founded in 1988 and the construction of the production plant in Ukraine in 1993, the company has delivered about 1,500 aircraft. Information: www.flightdesign.dev
About the receiver
Lawyer Knut Rebholz is a partner of the law firm Mönning & Partner, acting all over Germany at eleven offices in Aachen, Berlin, Cottbus, Dortmund, Dresden, Dusseldorf, Gifhorn, Hagen, Hamburg, Hildesheim and Leipzig. Like his colleagues in the Registry, Rebholz has solid, long-standing and proven in practice experience in restructuring and receivership proceedings of any size. More information: www.moen-ning-partner.com
Contact for journalists
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