Piper parent company hits financial turmoil
The owner of Piper Aircraft, American Capital, formerly known as American Capital Securities, has posted losses and is in violation of debt terms as its assets shrink in a plunging market, the Washington Post has reported.
Lenders require that the company assets not go below 200 percent of the amount of the company’s debt. Efforts are in progress to get waivers for that requirement. American Capital, based in Bethesda, Md., specializes in the purchase of mid–size companies. It manages them to financial health and sells them, sharing the proceeds with its investors. The 108 firms cover a wide range of products and services, from research and medical companies to clothing firms and car repair.
American Capital officials told the Post that they have the patience and the money to wait out the current economic storm. The sales process for six of the 108 companies was stopped because investors believed that anyone selling in this environment is willing to settle for rock–bottom prices. American Capital also owns Pan Am International Flight Academy; it is not known if the two aviation companies were among the six firms in negotiations.
March 9, 2009