American Capital Strategies has purchased New Piper Aircraft's secured bank debt of around $75 million. The move could see New Piper recapitalised "in an effort to restructure its balance sheet and reduce its debt leverage", the manufacturer says, resulting in American Capital becoming majority owner.
Bethesda, Maryland-based American Capital, a publicly traded buyout and mezzanine fund with capital resources of $1.8 billion, has since 1998 been a minority shareholder in the general aviation aircraft manufacturer with a 2% stake.
Philadelphia-based Dimeling Schreiber & Park currently holds the largest stake in New Piper with 46% and Allegheny Technologies has a 28% share. New Piper's annual revenues total around $137 million.
New Piper president Chuck Suma says: "We are now in a position to weather the periodic turbulence in our industry and move forward."
Source: Flight International
