PIPER AIRCRAFT emerged from bankruptcy on 10 July, when the court approved the company's sale to its creditors and an investment firm for $95 million. Philadelphia, Pennsylvania-based Dimeling, Schreiber and Park has taken a 50% stake in New Piper Aircraft, with creditors receiving 25%. Piper filed for Chapter 11 bankruptcy protection in July 1991.
Creditors will receive an immediate cash payment of 35¢ in the dollar, or a total of $7 million, and are expected to receive full payment of their debts, plus interest, through their stock ownership. The agreement is backed by Piper's largest creditor, engine supplier Teledyne Continental Motors, which has a $6 million claim against the company resulting from a product-liability lawsuit.
Source: Flight International
