US maintenance giant Aviation Sales says there is "substantial doubt" about its ability to continue in business, and that it is looking at asset disposals, "including the potential sale of its manufacturing operations".
The Miami-based company announced a net loss of $21.7 million last year - compared with a $25.5 million profit in 1998 - after warning that it would take a $72 million fourth quarter charge against a reduction in the worth of its parts stockpile.
The company says it is "not in compliance" with agreements on loans totalling $270 million at year end. Although lenders have agreed to waive these until 31 May, "there can be no assurance" that it will obtain a new credit facility. Aviation Sales is trying to sell four Airbus A300s. Manufacturing disposals could include passenger entertainment, avionics and aircraft interiors capabilities.
Source: Flight International
