|
Eclipse Aviation is awaiting word on when it can expect a cash infusion from Russia. Timing is a matter of concern since the Albuquerque, N.M., airframer's current cash reserves only will sustain company operations at their current levels through the end of October. Russia's state-owned Vnesheconombank [Bank for Development and Foreign Economic Affairs] announced on Sept. 15th that its Supervisory Board, headed by Prime Minister Vladimir Putin, had approved $205-million for investment in Roel Pieper's European Technology and Investment Research Center [ETIRC] to establish an Eclipse 500 assembly and support facility at the Ulyanovsk-Vostochny airport. ETIRC is the "exclusive provider of sales, customer support, maintenance support and flight training" for Europe, the Russian Federation, the CIS and the Republic of Turkey, according to Eclipse Aviation. The Ulyanovsk plant will have the capacity to build up to 800 Eclipse 500 aircraft per year, as well as provide customer support services, according to Eclipse. But ETIRC isn't obligated to invest all of the $205-million in the Russian facility. An undisclosed portion of VEB's will be paid directly to ETIRC essentially as a production rights fee, potentially providing a much needed cash infusion to the struggling Albuquerque firm, in which it hold a sizable interest. ETIRC will use another part of the funding to build the physical facility at Ulyanovsk. ETIRC will pay the remainder of the money to Eclipse to provide tooling, engineering services, training and quality assurance. However, the timing of the funding has not been announced. Pieper, who is also Eclipse president, is working with UBS to secure underwriting of a new $200- to $300-million investment in Eclipse to resume normal operations in 2009. Eclipse expects to receive either the VEB funding or a substantial cash infusion underwritten by UBS by Oct. 31st. "The good news is that either source will come in, in time," Mike McConnell, president and GM of Eclipse's customer division, said confidently. "When it comes in, our priorities will be to settle our relationships with our suppliers, take care of our customers and resume normal operations in 2009." Sources close to Eclipse estimated that the UBS investment to be as much as $200-300 million. But if neither funding source comes through in the next five weeks, Eclipse's depleted cash reserves could encounter rough going in early November. aviationweek |
