One Aviation Files Chapter 11 Bankruptcy
One Aviation has entered into a consensual restructuring, the company said in a news release on Wednesday, and has filed for Chapter 11 bankruptcy. The company has secured financing that will enable it to maintain its normal operations and plan for the future, according to the release.
One Aviation has "entered into a consensual restructuring," the company said in a news release on Wednesday, and has filed for Chapter 11 bankruptcy. The company has secured financing that will enable it to maintain its normal operations and plan for the future, according to the release. "The path to this outcome has been long and difficult," said CEO Alan Klapmeier. "The management team appreciates the generous support it has received from its employees, service providers, suppliers and customers throughout the process."
Development of the EA700 Canada—an upgraded version of the Eclipse EA500 twinjet, with more range and faster cruise—will continue, and the company said it also will continue to provide service, maintenance and upgrades to the existing fleet of EA500 and EA550 jets. The company didn't announce any plans for the Kestrel turboprop, and Klapmeier has not responded to AVweb's request for more details.
The company's financial problems over recent years have been widely reported. Earlier this year, the company was behind on its hangar rental fees in Albuquerque, and downsized from three hangars to one. Previously, its operations in Maine, in support of the Kestrel turboprop, were shut down, and jobs were cut from both Kestrel and Eclipse staff.
