THE LONG-RUNNING saga, over the sale of bankrupt Piper Aircraft, appears to be drawing to a close, with a deal now in place, which would see the light-aircraft manufacturer acquired for $95 million.
Teledyne Industries, along with Investment Company Dimeling, Schreiber & Park (DS&P) have formed a new company, Newco Pac, to carry out the acquisition.
Under a fresh re-organisation plan filed with the US bankruptcy court, a trust fund formed for the benefit of Piper's creditors and shareholders will own 25% of Newco Pac.
DS&P, which already owns Rocky Mountain Helicopters, agreed to buy Piper for $35 million in December 1993 but that deal, was rejected by the creditors. Teledyne, backed by Kaiser Aerospace, submitted a $70 million bid for Piper in November 1994, thereby blocking the creditors' plans to take over the manufacturer.
At that time, the bankruptcy court ordered Piper and Teledyne to discuss the possibility of a joint re-organisation plan.
Source: Flight International
