Remos receives 'significant' capital infusion
Remos Aircraft announced Dec. 10 that it has received a significant capital infusion from its investors that will strengthen the company going into 2010.
The German manufacturer of light sport aircraft, a privately held company, had filed a proceeding known as a “notice of insolvency” earlier this month. The action was necessary because of a German law that requires businesses to notify the courts of possible financial problems. The notice pertained only to the company’s manufacturing arm, based in Pasewalk, and did not affect its sales or flight training networks in the United States.
With the infusion of capital, that notice has been withdrawn. “We are a fully funded operational company,” Remos Managing Director Corvin Huber said. He emphasized that there has been no change in ownership or control of the company. He also discounted press accounts that the company was restructured, saying, “There were some minor changes. Usually ‘restructuring’ means you take something defunct and make it work again, and I would refrain from that exact word at this point in time.” He said the company is in good standing with its suppliers, meeting its obligations, and ordering materials for aircraft production.
Huber declined to reveal how much cash has gone to the company, citing shareholder confidentiality.
Remos has employed an aggressive marketing campaign of its LSAs in the United States in the last year. The company was ranked fourth in U.S. market share among LSA manufacturers as of August 2009, behind Flight Design, American Legend, and Tecnam, according to ByDanJohnson.com. AOPA announced in November that its 2010 Fun to Fly Sweepstakes aircraft is a 2009 Remos GX. It is the association’s first LSA sweepstakes entry.
December 10, 2009