Mooney Aircraft hoped to resume production late last week after filing for Chapter 11 bankruptcy protection on 27 July. Debtor-in-possession funding from primary lender Congress Financial has allowed the Kerrville, Texas, company to continue operations while it works to re-emerge from bankruptcy.
President and chief executive Chris Dopp has resigned, with responsibility for running the company handed to Michael McConnell, senior vice-president for strategic planning. A reorganisation plan must be presented to the bankruptcy court on 13 August.
Mooney had 22 aircraft on the line in various stages of production when it filed for Chapter 11. Discussions with vendors were under way last week and the company hoped to restart the line by the end of the week. Mooney is hoping to produce one-and-a-half aircraft a week, down from a rate of 10 a month.
Mooney blames slow sales caused by the soft economy for its troubles, but the company has struggled financially for years. It was bought from its previous owners four years ago and made a profit last year - "the first in recent memory", says senior director Hank Engel.
The company had only five orders in hand when it filed for Chapter 11, but hopes the just-finished AirVenture 2001 show in Oshkosh, Wisconsin, will have provided a much-needed sales boost.
Three piston-single light aircraft types were in production at Mooney - the Bravo, Ovation and Eagle - all using the same airframe. A simplified training aircraft - the Master, based on the Eagle - is under development and "a couple" have already been sold, says Engel.
Source: Flight International
