Sino Swearingen Aircraft is in talks with its Taiwanese backers for more funding to complete development and certification of its SJ30-2 light business jet.
The US firm has laid off 100 employees, 25% of its workforce, and slowed work on the SJ30 prototypes as negotiations continue.
Because of delays, an additional $100 million is needed to get the aircraft into production. Sino Swearingen's Taiwanese backers, who have already invested $250-300 million, were unwilling to provide more money, so the company retained advisors MorganStanley to find new investors.
The search was unsuccessful because of financial market conditions in the USA, so Sino Swearingen has turned back to its Taiwanese financers. The company is optimistic of an agreement, saying talks are "related to how, not if".
The funding problems will delay certification, which was hoped for by year-end. This is now likely to be delayed until the second half of 2002, says the company.
The first SJ30-2 prototype has flown and a second airframe has entered static testing, but work on the two remaining flying prototypes and the fatigue test airframe has been slowed.
Source: Flight International
