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Financial Restructuring
Over the past decade, enormous economic change has been taking place in
the aerospace and defense industry, the kind of change that creates complex
challenges. The capital- intensive nature and lengthy research and development
cycles of our industry, plus the fact that return on investment must be
calculated over a very long period of time, create a situation that no
industry could sustain without confronting complicated choices.
At First Equity, we help clients find their way through these difficult
times. Combining our financial, aerospace and restructuring expertise,
we can quickly respond to the needs of clients in financially distressed
situations. Working closely with each unique case - regardless of complexity
- we assist clients in finding solutions, be it through Chapter 11 planning
and support, asset divestitures, or assistance with debt and equity financing.
We believe restructuring should be a fundamental, positive strategy for
profit, growth and lasting value, for only by embracing change can we
prepare for the future.
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Mooney Aircraft Corporation
Mooney Aircraft Corporation is a manufacturer of aircraft recognized
as performance leaders in the single engine market. Facing difficult
market conditions, Mooney filed for Chapter 11 bankruptcy protection
in late July 2001. The company's creditors hired First Equity in
mid-September to quickly assess the marketable strengths of Mooney,
prepare the company for sale, and find a worthwhile acquirer. Within
two months, First Equity's successful marketing had generated serious
interest from over 120 parties and resulted in nearly a dozen formal
acquisition offers.
While a number of private investor groups and restructuring experts
attempted to purchase the company for low valuations, First Equity
targeted a handful of strategic acquirers, particularly development
stage aircraft manufacturers who valued synergistic opportunities
as well as Mooney's excellent brand equity and reputation. After
an extensive period of negotiation, the secured debt position in
Mooney was sold to Advanced Aerodynamics & Structures, Inc.
(AASI), which subsequently purchased Mooney's assets with the approval
of the bankruptcy court and Mooney's numerous creditors.
AASI, designer and manufacturer of the Jetcruiser single-engine
turboprop, intends to restart production of Mooney aircraft and
rename AASI as Mooney Aerospace Group, Ltd.
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