Cessna is the only aviation company remaining in the competition to acquire bankrupt general aviation aircraft manufacturer Columbia, after Cirrus Design and Granger Whitelaw pulled out of the race. An auction is planned for 27 November and other potential bidders include Versa Capital Management and Park Electrochemical
Cirrus blames the cost of maintaining the warranties of the 600 Columbia 350 and 400s, while in an open letter to Columbia employees investor Granger Whitelaw said he had offered to put $3 million in escrow to head off bankruptcy, "but ultimately [Columbia's] Malaysian board decided to follow the advice of their advisers" and seek bankruptcy protection.
Cessna has promised to buy Columbia for $25 million. Bids start there, and the winner must outpace the others by $200,000.
Source: Flight International
