Cessna (booth 8550) has signed a letter of intent to acquire troubled high-performance single-engine piston manufacturer Columbia Aircraft.
Oregon-based Columbia has applied for bankruptcy protection under Chapter 11.
"We have explored many options over the past months," says Columbia chief restructuring officer Carl Young. "This path enables the company to manage its present cash flow and liabilities while pursuing a plan that enables us to continue operating until a final sale can be completed."
Under the agreement, all product warranty and service issues will be honored post-acquisition.
The sale to Cessna depends upon bankruptcy court approval and the two companies are hammering out the finer details. Robert Stangarone, Cessna’s vice-president of communications says: "We have examined the aircraft thoroughly and it brings an extra high performance option for our customers.”
Cessna says that Columbia’s low-wing SEP will not be a replacement for its in-development NG piston product.
Source: Flight Daily News
