GATX is seeking buyers for the former Ayres Thrush agricultural aircraft product line and Loadmaster turboprop freighter development programme after foreclosing on the firm's assets at a bankruptcy auction on 7 August. Five potential bidders have emerged for all the assets, and three more are interested in just the Thrush line, says Glen Hickerson, chairman of the aviation advisory board of San Francisco, California-based GATX Capital.
GATX secured all Ayres' assets in return for reducing the firm's debt by $10.3 million. The company had loaned Ayres $15 million in 1998 to finance development of the Loadmaster. By the time the Albany, Georgia-based firm filed for bankruptcy, the debt had risen to $22 million with interest and debtor-in-possession financing from GATX, Loadmaster launch customer FedEx and engine and avionics supplier Honeywell, says Hickerson.
GATX has formed Crown Aerospace to take over the assets. Hickerson anticipated receiving three bids by the end of last week. Efforts by the manufacturer to find a buyer before the bankruptcy auction failed because potential bidders were unable to reach a deal with sole stockholder Fred Ayres, says Hickerson. "Now they are dealing with GATX. We have the assets they can acquire and not the debt. That stays with Ayres."
The company has yet to fulfil a US State Department contract for nine Thrush drug-eradication aircraft and holds 27 orders for the Loadmaster from customers other than FedEx, which says it is still interested in up to 100 of the turboprop freighters.
Source: Flight International
