Friday, March 23, 2012

Former Cirrus owner files bankruptcy

About that sale of Duluth-based Cirrus Aircraft last year… One could now say thank goodness!

Arcapita, the company’s former majority shareholder, filed for bankruptcy this week, after failing to reach an agreement with creditors, according to Bloomberg news.

Arcapita, a Bahrain-based private-equity firm, listed $3.06 billion in assets, but $2.55 million in liabilities in its filing in U.S. Bankruptcy Court in Manhattan.

The global recession had reduced the company’s asset values and stymied the Arcapita Group’s ability to obtain needed liquidity from capital markets, according to Bloomberg.

Money owed includes a $1.1 billion “syndicated shari’ah complaint loan” due this month, Bloomberg said. Chapter 11 will allow the company to restructure without being hounded by creditors.

In June, the sale of Cirrus to China Aviation Industry General Aircraft Co. based in Zhuhai, China, became final. Since then, Cirrus is apparently getting the needed funding to advance its jet program that it wasn’t getting from its previous owners.


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