Kestrel Struggles, Seeks New Financing (Revised)

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Key Takeaways:

  • Kestrel Aircraft is experiencing significant financial troubles, including late worker payments, overdue rent at its Brunswick facility, and a lapse in employee health, life, and dental insurance benefits.
  • The company, which employs about 40 people designing a new single-engine turboprop, has a history of difficulties securing financing for its manufacturing operations.
  • Kestrel is reportedly close to securing a new round of funding, which company officials hope will allow them to resume payments and resolve the current issues.
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A Bangor, Maine, newspaper reported this week that Kestrel Aircraft is struggling to pay workers and is behind on its rent payments at the companys Brunswick Naval Air Station facility. Kestrel CEO Alan Klapmeier confirmed to the Bangor Daily News that payments and payroll have been late and that Kestrel employees in Brunswick are currently without health, life and dental insurance benefits.

Although company spokesperson Kate Dougherty declined comment when contacted by AVweb Monday, the paper reported that Kestrel is close to receiving a round of funding that may allow it to resume payments. Kestrel employs about 40 people at the Brunswick Landing facility, where it is designing a new single-engine turboprop. The company had originally hoped to bring 300 jobs to Brunswick, but in 2011, due difficulties in obtaining financing, it said it would move manufacturing operations to Superior, Wis.

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