ONE Aviation Obtains Clearance For Acquisition

Image: ONE Aviation
Gemini Sparkle

Key Takeaways:

  • ONE Aviation has received CFIUS approval for its acquisition by Chinese-backed Citiking International, clearing the way for the ownership change.
  • This acquisition is a crucial part of ONE Aviation's plan to exit Chapter 11 bankruptcy, filed in October 2018 due to significant debt.
  • Upon completion, Citiking International will assume 100 percent ownership of the Albuquerque, New Mexico-based aircraft manufacturer.
See a mistake? Contact us.

ONE Aviation has gotten the OK from the Committee on Foreign Investment in the United States (CFIUS) to move forward with its acquisition by Chinese-backed investment company Citiking International. The ownership change is part of ONE Aviation’s plan to exit Chapter 11 bankruptcy. According to an announcement from law firm Paul Hastings LLP, which represented the company in the CFIUS process, Citiking will own 100 percent of the Albuquerque, New Mexico-based aircraft manufacturer following the acquisition.

As previously reported by AVweb, ONE Aviation filed for bankruptcy in October 2018. The company reportedly owes $198.8 million in total debts, approximately $53.2 million of which comes from development loans given by state and local governments. ONE Aviation went through two rounds of layoffs and was evicted from its Brunswick, Maine, hangar facility for failing to pay rent in 2017. The company’s bankruptcy exit plan was approved by the United States Bankruptcy Court for the District of Delaware on Sept. 18, 2019.

ONE Aviation produced the Eclipse EA500 and EA550 jets along with developing the EA700 Canada jet and Kestrel turboprop. The company was formed in 2015 by a merger of Eclipse Aerospace and Kestrel Aircraft.

Kate O'Connor

Kate is a private pilot, certificated aircraft dispatcher, and graduate of Embry-Riddle Aeronautical University.
Sign-up for newsletters & special offers!

Get the latest stories & special offers delivered directly to your inbox

SUBSCRIBE