Yet More Changes At Mooney...

  • E-Mail this Article
  • View Printable Article
  • Text size:

    • A
    • A
    • A

New Owners Take Over...

Allen Holding Finance Ltd. has paid $4 million to buy the stock of Mooney Airplane Company (MAC) from its parent company, Mooney Aerospace Group Ltd. (MASG), MASG announced on Tuesday. MASG President J. Nelson Happy said the sale took place because MASG's secured debenture holders declared their notes in default. "As a result, the MASG board accepted the offer to purchase all of Mooney Airplane Company's stock by Allen, and the sale was completed last Friday morning," Happy said in a news release. "The board of MASG deeply regrets that the sale of Mooney Airplane Company's stock was made necessary," he added. "However, Allen has assumed over $21 million of the Company's debt owed to the secured debenture holders, and has also agreed to provide $4 million of new capital for the operating company within 30 days," Happy said. "This is good news for Mooney Airplane Company, which will now have adequate capital to meet its business plan." MASG will no longer have any financial interest in MAC. A court decision last Friday ordered MASG to pay almost $24 million to their former landlord at Long Beach (Calif.) Airport. "We were very disappointed at the outcome of this case, but we must abide by the court's decision," Happy said in a news release on Tuesday. "We fought the landlord's claim with all of our legal resources, but in the end the landlord prevailed. The board is inclined to appeal the decision, however."