Fellow Eclipse Deposit Refund Seekers
During a conference call which occurred last Friday, December 12, 2008, legal options were discussed as how to proceed with the Eclipse Aviation Bankruptcy. A firm with experience advanced a "Constructive Trust" theory. For the group's benefit we sought out opinions with three additional law firms. The three law firms were presented with the facts, contracts, refund information and associated emails. The three law firms firmly believed that the Constructive Trust theory had no legal basis and no chance of success. The phrase bandied around was "throwing good money after bad money."
The other legal option would be to become an unsecured creditor. With the amount of liabilities versus expected assets the likelihood is the unsecured creditors would not see a single cent from the sale of the assets.
This leads to the question to what is the best option available for those seeking refunds. After much consultation it appears that the least financially damaging option would be to seek reinstatement to a depositor status (withdrawing the refund request). This would allow the depositor seeking refund to join the ranks of the depositors not seeking refunds, 60% depositors and aircraft owners, which would be most likely considered executory contract holders. The Newco would then have the option of denying the executor contracts, accepting them as is or accepting them with new terms.
Being treated as a depositor would allow you to have more options to realize value if ETIRC or another asset purchaser is successful. The recent EASA certification may also create value for position holders.
The E5C board has been working diligently to pre-negotiate the status of those contracts which are likely to be considered executory contracts. E5C has created an Ad-Hoc committee which has representation of those individuals seeking refunds.
If you have not joined the E5C you should do so immediately: www.eclipse500club.org. The individuals that have 60% deposits and aircrafts have much more to lose financially than those with 10% deposits. The 60% depositors and aircraft owners have been asked to contribute $4500 to the group for legal/financial representation. This new group is called the Ad Hoc Customers Committee. Those of us that have 10% deposits (both seeking refunds and not seeking refunds) have been asked to contribute $2250 towards the fund. Since this would appear to be the best legal option you are urged to join the club and contribute towards the legal fund. The Ad Hoc Customers Committee is committed to protecting all our interests.