Earlier today, the 'senior note holders' filed a Motion to Convert to Chapter 7, which will give them effective control of the assets of Eclipse Aviation Corporation. This was accompanied by a Motion to Shorten, which leads one to believe that these note holders do not anticipate opposition from ETIRC. This ends the Chapter 11/Section 363 process, which began on the 25th of November last.
There will clearly be ongoing coverage of this, both here and in the wider media. I'll update the headline and provide ongoing information as soon as it reaches me here in Ireland.
Finally, for now, let's remind ourselves of the debt we all to to Stan and Rich, the former for starting the ball rolling and the latter for defending us in our hour of need.
UPDATED Wednesday 25th 14.25 GMT
We are very sad to report unexpected news today. Despite the efforts of many people at EclipseJet Aviation and ETIRC to obtain necessary funding to close the purchase of the assets of Eclipse Aviation, the closing of the sale transaction has stalled and our company is out of time and money. Given the dire circumstances in today’s global marketplace and the lack of additional debtor-in-possession funding, the senior secured creditors of the Company filed a motion today in US Bankruptcy Court in Delaware to convert the Chapter 11 case to a Chapter 7 liquidation. This action, under the circumstances, is being supported by the directors of Eclipse.
What does this mean for each employee? The furlough converted to a layoff effective Thursday, February 19, 2009. Most regrettably, you will not be paid the paycheck due on Thursday, March 5, 2009 nor is any vacation pay available. You may have certain rights to seek payment in the bankruptcy proceeding; you may receive additional information about that from the bankruptcy court.
As it stands today, all benefits coverage will end at midnight on February 28, 2009. COBRA benefits will be available for the month of March if you wish to sign up for medical, dental and/or vision coverage. Later this week you will receive a termination package in the mail which will have information regarding all of your benefits.
The Bankruptcy Court will likely appoint a Chapter 7 trustee in our case within 30 days, at which time the trustee will control all assets of Eclipse and will seek to sell them. We cannot comment at this early stage on any liquidation path that might be pursued or possible interest from potential buyers.
We have times set aside on Wednesday and Thursday for each department to come in and collect their personal belongings in their cubes.
Building Schedule for Employee Access
Ø HQ Wednesday 10 to noon
Ø SP 2 Wednesday 1pm to 3pm
Ø SP 3 Wednesday 3pm to 5pm
Ø SP 4 Thursday 9am to 11am
Ø SP 9 Thursday 9am to 11am
Ø SP 10 Thursday 1pm to 3pm
Ø DEII Thursday 1pm to 3pm
Ø SP 11 Thursday 3pm to 5pm
Ø Gainesville Wednesday 10am to noon
Ø Albany Wednesday 10am to noon
All of the executive management team at Eclipse gives you our most sincere and heartfelt thanks for your tenacity and perseverance in trying to deliver this dream we know as the Eclipse 500. We gave it one heck of a try. We are sorry that it came to this today.