Flight Design going into reorganization:
http://ctflier.com/index.php?/topic/3621-flight-design-insolvency/
http://ctflier.com/index.php?/topic/3621-flight-design-insolvency/
Here's a twist... FD USA has announced a new model, the CTLSi 2020, showing their resolve to get past the reorganization and get back to business. There is also a new production partner, AeroJones, and planes already rolling of fthe production line.
Find the info at ByDanJohnson.com.
Probably the Bernath class action pushed them over the edge.
I was joking.FD Germany is in reorganization , as far as I know FD USA is doing just fine. They have contracts with the part suppliers, AeroJones for air frames, Rotax USA for engines. There should be no disruptions in the US.
Cheers
I was joking.
The judge laughed that suit out of court on a preliminary motion-to-dismiss.
Time will tell,many companies go through re-organization ,and survive. This could turn out to be a good thing. Hopefully they will continue with the C4.
Insolvency proceedings in germany are historically a bit more serious than chapter 11 restructuring in the US. It is quite common that companies get split or assets sold off by the trustee.
I hope they pull through. Sounds like they took a risk by setting up production in the frontier areas and got caught up in geopolitical developments they had no control over.
As a customer of FD USA, I can say they have been A #1 in my service needs, professional and courteous . My brother bought a new CTLSi 3 Mo. ago and is very happy with it. I think anybody that deals with FD USA will have Zero problems with the transition.
Cheers
It is nice that the CEO is still optimistic, however if the trustee finds that the liabilities exceed the assets, by law he has to dissolve the company in a way that maximizes return to the creditors (in order of priority). Doesn't matter whether company management believes that there is a pot of gold just around the corner.
Nope, FD USA is a separate company from FD Gmbh. As long as FD USA can source parts and airframes (which they have suppliers for currently), they will still be able to continue US operations, sales, and support.
Ironically, this setup originally was established to isolate FD from liability of the notoriously litiguous U.S. market (hello USS Dan Yorktown). Now it suddenly came useful for American customers, while litigation by European customers drove FD into receivership. Oh the irony. And if people hear about the lack of support and start asking realistic prices for 1000-hour CTSWs, it's great for me personally. I'm not paying $75k for one of those. For $40k, I may consider it.Nope, FD USA is a separate company from FD Gmbh. As long as FD USA can source parts and airframes (which they have suppliers for currently), they will still be able to continue US operations, sales, and support.
And nothing I said contradicts that.
Does FD USA hold the ASTM paperwork and IP to offer completed planes for sale or do they rely on licenses from FD GmbH ?
I had the opportunity to fly the CTLSi 323CT down at Spruce Creek a couple of years ago and it was a great, and fun plane to fly. That was the plane I was going to order and own but then I ended up just doing my PPL and not sport.
If it were just me flying around I'd buy one in a heartbeat..
AeroJones of Taiwan does, is my understanding. A direct supplier of FD USA. They are the world supplier of air frames now.
Cheers
With a insolvency, those licensing rights and patents may end up in the portfolio of a local savings and loan or some other high ranking creditor. As the Thielert bankruptcy demonstrated, the attorneys who run the process at that point just look at how they can squeeze the maximum revenue out of the captive user base. Sustainability, brand loyalty etc. are secondary considerations.
I was joking.
The judge laughed that suit out of court on a preliminary motion-to-dismiss.
Wheres the cliff notes of the suit?