Eclipse Auction Cancelled

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The Associated Press is reporting that a public auction to sell the assets of Eclipse Aviation Wednesday has been cancelled for lack of qualified competing bidders. According to AP's story, that will pave the way for EclipseJet Aviation, owned by current Eclipse Chairman Roel Pieper, to pick up the company for roughly 20 cents on the dollar. ETIRC is proposing to pay $188 million ($28 million cash, $160 million in new notes) and offer 15-percent equity to senior secured creditors. Eclipse's total liability was estimated at more than $1 billion when it filed for Chapter 11 protection in late November.

It was rumored that there were at least two competing bids for Eclipse but if there were other bids they were not considered to be qualified. Two committees of secured creditors and a committee of unsecured creditors who reviewed the bid(s) determined that there were no qualified bids, Eclipse lawyer Dan Guyder told the AP.