SJ30 Changes Hands Through Bankruptcy
Emivest Aerospace Corp., formerly Sino Swearingen, won approval from a bankruptcy court Thursday to sell its assets to MT LLC at a deep discount, leaving the future of the struggling SJ30 business jet program temporarily in question. MT's total cost appears to be $5.2 million, made up of a $3.5 million purchase price and $1.7 million in liabilities. It was the best available offer. Emivest vice president, Mark Fairchild, has said he expects MT "to maintain Emivest as a jet manufacturer of the SJ30." But specific plans had not been announced prior to our deadline, though they may become available as early as this week. Until then, anything is possible and not all the speculation has been positive.
Teal Group analyst Richard Aboulafia offered his doubts Thursday, stating that he believes it's unlikely MT will be taking up production of the SJ30. Aboulafia told MySanAntonio.com, "The level of resources brought to the table here is less than one percent of what's required." According to Aboulafia, the approved price of Emivest's assets suggests that MT will be selling what it acquires and not reviving the program. Meanwhile, Emivest's new owner, MT, is reportedly associated with the owner of Metalcraft Technologies Inc. Metalcraft is an aerospace parts manufacturer based in Utah that has produced parts for Boeing and other major manufacturers -- along with the tail section of the SJ30 and other SJ30 components. If MT does choose to move ahead with the SJ30, they will find themselves in possession of what is effectively a brand-new company free from debt and ownership issues, acquired at a deep discount. They'll have a fully certified aircraft, intimacy with the design and a large amount of inventory. More information may be available very soon.