The assets of bankrupt agricultural and utility aircraft manufacturer Ayres will be auctioned on 7 August unless a buyer is found for the company and/or its Loadmaster freighter programme.
Three groups, including Israel Aircraft Industries, are believed to be interested in buying Ayres and the Loadmaster, but the status of FedEx Express orders for the aircraft has emerged as a key issue.
FedEx has written off its investment in the Loadmaster programme, but has confirmed it has not formally cancelled its orders and is telling potential buyers it still interested in the aircraft.
Ayres president Russ Heil says FedEx remains interested in acquiring up to 100 aircraft "under the right terms and conditions". Any buyer of the Loadmaster programme would have to negotiate a "new deal" with FedEx, he says.
Major creditor GATX persuaded the bankruptcy court to lift the stay of foreclosure on Ayres at a hearing on 3 July. GATX lent the company $18 million to finance Loadmaster development. The asset auction has been set for 7 August. Meanwhile, Ayres and GATX continue to talk with potential buyers.
Heil says a business plan has been drawn up that would abandon the Loadmaster and allow Ayres to continue operating as an agricultural aircraft manufacturer and commercial aerostructures subcontractor. Alternatively, Ayres could continue Loadmaster development, but this would require an investment of at least $70 million, he says.
"The business plan shows that, if we carve the Loadmaster out, with a line of working capital and given the opportunity to rebuild, the company can stand on its own two feet," says Heil. At the same time, "we are talking to people who are interested in the Loadmaster only and the Loadmaster and the rest".
Some of the Loadmaster assets, including tooling and data for the wing and empennage, remain with bankrupt Czech manufacturer Let, which is operating under administration. An effort to find a buyer for Let failed, and Ayres believes a healthy Loadmaster programme would improve the prospects of selling the Czech company.
GATX moved to foreclose on Ayres' assets after efforts to form a new company around the Loadmaster failed when FedEx decided not to become an investor. "Because of declining business fortunes and internal reasons, FedEx was not willing to become an equity partner," says Heil.
Source: Flight International
