The manufacturer of the SJ30 light business jet has filed in the U.S. Bankruptcy Court in Delaware for Chapter 11 bankruptcy protection from creditors. According to AINOnline, Dubai-based Emivest Aerospace Corp, which bought 80 percent of the SJ30's original manufacturer Sino Swearingen Aircraft in 2008, asked the bankruptcy court to approve debtor-in-possession (DIP) financing of $4 million to retain employees for the duration of its reorganization proceedings and to keep supporting the four SJ30s already in service. Emivest bought Sino Swearingen planning to invest more than $1 billion into the company to restart serial production and did deliver two aircraft in 2009, but no aircraft were delivered subsequently and three aircraft are stranded on the production line.
Three companies have offered proposals to provide DIP financing to Emivest Aerospace, whose U.S. headquarters at San Antonio International Airport, the San Antonio Business Journal reports. The company has a 130,000-square-foot hangar at San Antonio International Airport it uses for its headquarters, development center and fixed-wing assembly facility. Emivest has another 12,800-square-foot facility in San Antonio which it uses as a test facility and FAA repair station but builds its aircraft in Martinsburg, West Virginia.
The average price for an SJ30 is $7.2 million, according to the San Antonio Business Journal, which notes that Emivest owes $55.8 million to creditors. As of October 18, the company had drawn down $35.8 million from its revolving credit facility. It also owes $15 million to Yao-Hwa Glass Co. LTD., $250,000 to Security Air Park Inc. and $4.75 million in unpaid accounts payable and other debts.