Two Former Eclipse Employees File Suit

Gemini Sparkle

Key Takeaways:

  • Eclipse Aviation is being sued by former employees for allegedly failing to provide 60 days' layoff notice as required by federal law, with plaintiffs seeking back pay and benefits and considering a class action.
  • The company is in bankruptcy proceedings, awaiting a judge's decision on converting its Chapter 11 filing to Chapter 7 liquidation.
  • A new company, New Eclipse Acquisition LLC, is working to acquire Eclipse's assets and plans to resume production, initially focusing on upgrading and servicing the existing fleet to increase its value.
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Eclipse Aviation was required by federal law to give employees 60 days’ notice before laying them off, but failed to do so, according to a suit filed by two former employees on Tuesday in Delaware. Annette Varela, who worked in Albuquerque, and John J. Dimura, who worked at a service facility in New York, are asking for back pay and benefits, and may pursue the matter as a class action if other former employees join them. Jack Raisner, their lawyer, told KQRE.com that the two face “an uphill battle.” However, he also said that when money is raised by the Chapter 7 bankruptcy sale of the company’s assets, some money might be left over for former employees.

A judge was due to decide on Wednesday whether to allow the company to convert its Chapter 11 bankruptcy filing to Chapter 7 liquidation, but at our deadline, the judge had not yet ruled. A newly formed company, New Eclipse Acquisition LLC, is working to acquire the assets of the company and eventually resume production. [more] Phil Friedman, currently CEO of an aircraft electromechanical and structural assembly company in Wichita, said he intends to take advantage of “an excellent business opportunity if managed correctly.” Friedman says he’s working with former Eclipse CFO Peter Reed and has developed a business plan that aims to first upgrade and service the existing fleet, which he hopes will drive the jet’s value up to the $2 million range.

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