Thielert Aircraft Engines has thrown in the towel after its share prices dropped to near penny stock levels as the crisis over its financial reporting practices deepens. Thielert filed for insolvency on Friday as its share price dipped to .35 Euros. It's traded as high as 25.22 since it went public in 2005. The very existence of the company is now in question as the insolvency process begins. "The going concern of Thielert Aircraft Engines GmbH can only be ensured permanently by restructuring activities with the support of investors, due to the fact that the Holding Thielert AG is not capable to do so anymore," the company's supervisory board said in a statement.
Meanwhile a new executive board must be named, along with an interim insolvency trustee who will present a plan to creditors, and the acceptance of this plan is crucial to the business continuing. On Thursday, the board dismissed company founder Frank Thielert and Chief Financial Officer Roswitha Grosser after receiving results of preliminary criminal investigations into their activities. The situation has major implications for aircraft companies like Diamond and Cessna, which manufacture aircraft with Thielert diesels. "We are in touch with the senior leaders there and we continue to assess the situation as it unfolds," Cessna's Doug Oliver told AVweb.