Let’s hope Jetcruzer investors weren’t looking for help to pay the Christmas bills from the auction sale of the once-vaunted company. After pouring almost $100 million into engineering, development and certification of the rear-engine turboprop, the top bid was just $125,000. That’s a bit more than a tenth of a cent on the dollar. Mooney Aerospace Group (MASG) spokesman Dan Apel said the bid was received just before the noon deadline on Tuesday. MASG, which used to go by the name Advanced Aerodynamics and Structures Inc. (AASI), had a reserve bid of $500,000 on the Jetcruzer assets and Apel said the lower bid must be approved by the board of directors. He said the prospective purchaser, whom he declined to identify, has not indicated what will be done with the prototypes, molds, drawings and type certificate (for an unpressurized version). Apel said the sale, assuming it’s approved, is the final step in the withdrawal of the company from Long Beach, Calif. Except for a small accounting office in Long Beach, MASG will be based at the Mooney plant in Kerrville, Texas.
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Jetcruzer Goes For $125,000
Key Takeaways:
- The Jetcruzer company, which had nearly $100 million invested in its development and certification, received a top auction bid of only $125,000 for its assets.
- The $125,000 bid is significantly lower than the Mooney Aerospace Group's (MASG) reserve price of $500,000, requiring board approval for the sale to proceed.
- This asset sale marks the final step in MASG's withdrawal from Long Beach, California, with most operations moving to the Mooney plant in Kerrville, Texas.
- The identity of the prospective purchaser and their plans for the Jetcruzer assets, including prototypes, molds, drawings, and the type certificate, are currently unknown.
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