Undisclosed Italian investor steps forward after Swiss and UAE backers withdraw
Another investor has come to the rescue of Miami-based Safire Aircraft, less than two months after an institutional investment group from Switzerland and the United Arab Emirates pulled out of a deal to fund development of the Safire very light jet through to certification.
Camillo Salomon, president and chief executive of Safire, is hoping to secure the funding from an Italian investor early this week, he says, and be fully operational by 24 October, "but based on past experience, we are not taking anything for granted". Safire's funding crisis came to a head in April, forcing the company to lay off its workforce.
Three investors from Switzerland and the UAE stepped in two months later, pledging full funding.
But the deal collapsed in August despite the signing of a legally binding contract "as the group could not agree between themselves how the investment should be distributed", says Salomon. The shareholders operated from the facility until earlier this month, when they were evicted by the Opa Locka airport-based landlord, Miami Executive Aviation, for failing to pay rent.
Salomon says the new investor has committed to fund the programme into the manufacturing phase on condition that development milestones are met on time. "We have agreed to a budget and development timetable and will release the planned first flight and certification dates once the investor is on board," says Salomon. He concedes that the first tranche of investment will be used to pay the company's debts.
"Then we will acquire assets and stock from the current shareholders," he adds. "We have lost around three months on the programme already and spent over $30 million. We must get back on track as soon as possible."
The new investor has selected Opa Locka as the manufacturing and assembly base for the aircraft because it has other business interests in Florida, says Salomon.
KATE SARSFIELD / LONDON
Source: Flight International
