October 18, 2010
By Alton K. Marsh
At least three groups of investors have indicated interest in Mooney, but not in its debt load. For that reason, Mooney Airplane Company has restructured itself, shedding debt in the process and changing its name to Mooney Aviation Company.
The former Mooney Airplane Company no longer exists. In a complicated legal maneuver, the company foreclosed on itself. It makes the company more attractive to new investors, but will leave some former investors behind in the process.
In the meantime, Mooney reports it is making new parts every day, and dealers have told the factory they are doing well, or as well as one does in a recession, with used aircraft sales.
To explain the maneuver Mooney has just completed, here is the legal phrasing from lawyers who guided the deal. “Mooney Airplane engaged in a friendly foreclosure as a result of its default under its indebtedness. As a result, substantially all of Mooney Airplane’s assets were surrendered to Mooney Aviation, which is owned by Mooney Airplane’s former senior secured creditors, in satisfaction of their claims. As a result of this restructuring, Mooney Aviation is not subject to Mooney Airplane’s indebtedness.”
The company’s official statement reads as follows: “As Mooney positions itself for the future, the assets of Mooney Airplane Company, Inc. have been transferred to Mooney Aviation Company, Inc. Mooney Aviation Company wants to advise customers that it is currently providing service on all aircraft supported by Mooney Airplane Company, including technical support, service parts and the factory service center based in Kerrville, Texas.”
AOPA Pilot Senior Editor Alton Marsh has been a pilot since 1970 and has an airline transport pilot certificate and instrument and multiengine flight instructor certificates, aerobatic training, and a commercial seaplane certificate.
As the cold weather chills AOPA’s Headquarters in Frederick, many of us are inside generating new resources for flying clubs.
In my house, every Friday night is “Movie Night.” While the movies are rarely educational (I don’t think I learned anything from the Lego Movie), we look forward to the weekly opportunity to spend time together. Why not use the same concept for your Flying Club (with the addition of education, of course)?
AOPA Flying Club Manager Kelby Ferwerda posted the following on the AOPA Flying Club Facebook Page: “Recently I’ve talked with quite a few Flying Clubs about maintaining social activity through the cold winter months. Some clubs host Holliday Parties, others have Potluck Movie Nights. What does your club do to keep members involved during the chilly months?”
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