- The creditors meeting on August 8, 2016 has agreed on a combined cooperative offer of the Lindig group Eisenach / Germany and Aero Jones Taichung /Taiwan
- The Lindig group will take over Flight Design under an insolvency plan procedure.
- Aero Jones in an asset-only purchase takes ownership of the C4 project and CT business, where the supply of spare parts and support for all models is ensured.
Knut Rebholz, receiver of Flight Design, will according to the agreement of the parties, create an insolvency plan and will prepare a parallel an asset deal with Aero Jones. The insolvency plan will be then submitted to the court and the creditors. The termination of the insolvency proceedings is scheduled for no later than Autumn 2016.
“The creditors with their decision for the new investors have paved the way for a continuation of the core business as well as the production and support of established aircraft and completion of new developments,” says receiver Knut Rebholz.
Precondition for the successful restructuring was that the receiver Rebholz was able to continue the business operations of the company since application and to continue the necessary licenses and regulatory approvals.
An important step was it to agree with customers on a way to finance their orders, which existed already before the insolvency. “The negotiations for this were, among other reasons, very complex, because the customers of Flight Design are from all over the world and are not familiar with the German Insolvency Code” says Rebholz. After the first agreements were reached, end of August / September, according the situation now, the first aircraft will be delivered to customers.
The customers whose aircraft orders were not met at the time of opening of insolvency proceedings-can confirm their orders to the conditions offered by the insolvency administrator until 30.09.2016.
The management of Flight Design has made in mid-February 2016 an application for insolvency after an international customer had not settled a bill of over seven figures. This lead the company into a liquidity squeeze. The management sought alternative financing to bridge the time until receipt of the outstanding payments. This was not then successful. The outcome of the current agreements should allow the company and products to go forward, support and approvals to be continued and creditors to be fairly compensated.
Flight Design, based in Wildau with a production site in Kamenz claims to be the world leader in the production of non-complex light aircraft. The company develops and manufactures aircraft in Wildau near Berlin, in Kamenz near Dresden and in Ukraine. The company is active in 48 markets. By licensing agreements, the planes are manufactured internationally also in Taiwan/China.
Flight Design recently had an annual turnover of about 11 million euros and in Germany almost 20 employees, mostly highly skilled engineers and technicians and about 100 workers in Ukraine. Since the company was founded in 1988 and the construction of the production plant in Ukraine in 1993, the company has delivered about 1,500 aircraft. Information: www.flightdesign.com
About the receiver
Lawyer Knut Rebholz is a partner of the law firm Mönning & Partner, acting all over Germany at eleven offices in Aachen, Berlin, Cottbus, Dortmund, Dresden, Dusseldorf, Gifhorn, Hagen, Hamburg, Hildesheim and Leipzig. Like his colleagues in the Registry, Rebholz has solid, long-standing and proven in practice experience in restructuring and receivership proceedings of any size. More information: www.moen-ning-partner.com
Contact for journalists
Spokesman of the liquidator
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Fon: + 49- (0) 221-400 73-87
Mobile: + 49- (0) 170-2101523
Wildau, GERMANY / 21 July 2016 — After a challenging first few months of 2016, things are looking up at Flight Design GmbH, the manufacturer of the popular CT series of light aircraft. After seeking and gaining acceptance of voluntary insolvency, the company has worked with dealers and suppliers to reorganize and continue producing aircraft at their facilities in Ukraine and Germany.
The most important news for existing owners of Flight Design aircraft was the immediate investment into ensuring the continuation of safety-related fleet surveillance. This is a key component of Continued Operational Safety Monitoring (COSM), which is of primary importance to EASA, the FAA and aviation regulators worldwide.
“I am satisfied to see how engaged the Flight Design Team is in serving the existing customers and continuing to support the brand. That positive attitude has also helped to attract interest of new investors,” said Mr. Knut Rebholz, the appointed receiver of Flight Design GmbH.
In parallel, the Flight Design GmbH engineering staff has, along with ongoing contracted development work, focused on continuation of all current approvals and completed an EASA audit at the German company’s production facilities the third week of July.
Newly manufactured metal and composite spare parts are being shipped to customers as a result of successful negotiations with the company’s major supplier network. Several aircraft that were in the process of manufacture are now nearing completion and approval for delivery to their respective customers.
The most important and hopeful news is after successful negotiations with major dealers, the first new aircraft orders since the insolvency declaration have been received and are now in the process of being produced, which is good news for suppliers, employees and supporters of Flight Design.
“We are very pleased to see things moving again,” said Daniel Gunther, COO of Flight Design GmbH. “It shows good faith by our dealers and suppliers to help us now when we really need it. We have received a lot of support from our employees as well. We look forward to delivering these new orders and going forward from there,” added Gunther.
While all of this goes on, promising negotiations with potential investors are currently in process. As a well-known brand in light aviation worldwide, Flight Design is a prime opportunity for investment to continue the production of their advanced line of CT series aircraft and continue development of the state of the art C4, a 4-place general aviation aircraft.
FACTS ABOUT FLIGHT DESIGN
Flight Design is a 29-year-old manufacturer based in Germany. The company remains the worldwide Light-Sport Aircraft market leader thanks to its popular CT series of aircraft. Nearly 2,000 of these aircraft are flying in 39 countries. One of the first aircraft certified under ASTM International standards in 2005, the CT (“composite technology”) boasts the largest fleet of LSA in America after ten years. Flight Design sold the first LSA to India and was the first LSA to earn Chinese Type Design Approval. Three times a CT has been flown around the world. In 2011, the German company unveiled its C4 four seat aircraft based on the CT technology.FLIGHT DESIGN CONTACT: firstname.lastname@example.org
FACTS ABOUT THE RECEIVER
Lawyer Knut Rebholz is a partner of the law firm Mönning & Partner, acting all over Germany at eleven offices in Aachen, Berlin, Cottbus, Dortmund, Dresden, Dusseldorf, Gifhorn, Hagen, Hamburg, Hildesheim and Leipzig. Like his colleagues in the Registry, Rebholz has solid, long-standing and proven in practice experience in restructuring and receivership proceedings of any size.More information: www.moenning-partner.com
Many new things have been going on with the C4 program recently and we thought it would be an appropriate time to bring you up to speed. As most of you know, The Flight Design C4, the new advanced four-place GA aircraft, achieved its first flight on April 9th 2015 at Kamenz airfield (EDCM) in Kamenz, Germany. The successful test flight was performed by Damian Hischier an FAA and EASA approved test pilot living in Switzerland.
The flight lasted one hour and the C4 was tested for basic handling, longitudinal trim, spiral stability in 20 and 30 degree banks, approach to stall and practice go–arounds. The primary engine operating parameters were also confirmed. The test flight was performed in a special test area at an altitude of 5500 Ft. MSL.
The process for flights by a non-certified aircraft in Europe is different than in the U.S. The plane is issued a “Permit to Fly” under a process involving EASA and the local CAA, in this case the German LBA. In meetings with EASA managers the basic design is reviewed, the load tests and aerodynamic calculations are verified and the flight-conditions for the test plan are approved.Prior to the first flight, the C4 passed numerous ground tests including control stiffness tests, a ground vibration test from an independent engineering firm and a powerplant installation audit by a Continental Motors engineering representative.
Since the first flight, additional flight tests have been performed to open up the weight and center of gravity envelope to establish a baseline stall speed at gross weight and the most forward center of gravity for stall speed determination. The C4 has now flown at 2640 Lbs. (1300 Kg) and shown a stall speed of less than 54 kts. The rate of climb has been demonstrated to be in excess of 950 FPM at gross weight and a cruise speed can now be projected of 145 Kts. The airplane is still in very basic condition aerodynamically (no fairings, rough wing profile) and as such the top and cruise speed can only be projected at this time. Upcoming tests are planned during the next few months to further open up the center of gravity envelope aft, more stability tests and more detailed performance testing.A photo Essay of the C4 first flight Day 4-9-15 By Tom Peghiny Flight Design USA
Taxing out to the departure end of runway 21 at Kamenz The C4 climbing out over the German countryside30degree banks were spirally neutral as expected Looking good EZFD, how about a formation break? See you on the ground! Back in the hangar for disassembly for the Aero Expo The Continental IO-360AF FAA Type Certified
Safety Box Program Update
In cooperation with the province of Jiangsu, AeroJones is breaking ground on a 250,000 square foot, brand-new production facility based in the city of Changzhou. AeroJones will produce airframes for the Light-Sport CTLS as well as Flight Design’s certified four-seat C4.Test Pilot Damian Hischier
Damian did the certification flight testing for the EASA certified version of the CTLS and is a graduate of the National Test Pilot School (NPTS) located at Mojave, CA. USA. Damian is an accomplished engineer, project manager and test pilot. He has experience with experimental and certification flight tests on Part 25, Part 23, LSA and Experimental aircraft. He holds an EASA Category 1 Flight Test Rating, an EASA Class 1 Medical (FAA equivalent) is a current ATPL, has flown 102 aircraft types. In addition he is a Bachelor of Information Sciences and Software Engineering and has provided technical expertise related to flight test and aircraft operational issues in support of design development activities. In addition to Flight Test duties for Flight Design GmbH., Damian works with other light aviation companies including, Stemme and Aquila.
Thank you for your continued interest in the C4. With the first flight of the C4 proof-of-concept, we are excited to be able to stay in communication with all interested C4 customers. We will continue to print new information about the program as it becomes available.
While its aircraft have become well known to pilots in the USA and worldwide, a quiet corner of the manufacturing business has been growing. Recently, Flight Design USA reported another delivery of its “Law Enforcement” version of the fuel-injected CTLS, or CTLEi model, that is fitted with high-definition cameras and an in-flight-adjustable flood light.
Roger Crow, founder of Echo Flight Resources, LLC, has labored hard to refine the public-use Light-Sport Aircraft he represents on behalf of Flight Design USA. “The integration of the public-use equipment payload for King’s County, California Sheriff’s Department turned out better than any of us would have imagined,” said Crow. “It is something we can all be proud of.”
“I have been working with Kings County Sheriff Deputy, Jerry Hunter, for more than two years to secure the purchase arrangements,” reported Crow. “A great deal of time involved confirming numerous details with the County’s Board of Supervisors plus gaining approval from their Legal and Finance offices.” Crow noted that more than a dozen individuals must sign-off on these contacts and purchase agreements before the deal may be allowed to proceed to the final sale.
Despite the long journey, Crow added, “An acceptance team from the Kings County Sheriff’s Department recently completed their inspection and received training on the law enforcement payload systems.” Department pilots also received three hours of CTLEi familiarization flight training. For more information: http://echoflightusa.com/
In a related success, Crow also reported, “A Purchase Agreement was signed for Tulare County, California to acquire their second CTLE, which will now be a CTLEi, reflecting use of the fuel-injected Rotax 912 iS engine. The agreement is expected to be presented to the Tulare County’s Board of Supervisors for approval during their county acquisition session earlier in 2015. The county has been operating a CTLE successfully for more than two years.
“In the highly-specialized field of public-use aircraft, we are very pleased have the expertise of Roger Crow,” said Tom Peghiny, president of Flight Design USA. “Naturally, we are interested to sell airplanes for such practical purposes as this but engaging in the process requires someone who knows the procedures, language, and proper use of the equipment. Roger Crow fills that role perfectly.”
In the central U.S., Crow and Flight Design USA coordinate with their distributor Airtime Aviation, perhaps the nation’s top seller of light aircraft. Airtime is located nearby in Tulsa, Oklahoma and has been very active since the start of Light-Sport Aircraft. FMI: http://www.airtimeaviationus.com/
Last fall, Flight Design GmbH, manufacturer of the popular CT-series of Light-Sport Aircraft, promised to fly its new, certified four seater called C4 by the opening of the Aero Friedrichshafen show. On Friday, April 9th, the development team achieved their goal. The weekend was spent reviewing initial results (see below) and preparing to set up at the event that start April 15th.
Flight Design’s senior engineering staff is based in Kamenz, Germany lead by Technical Director Oliver Reinhardt and C4 Project Lead Engineer Artem Izokh. Along with technicians, the engineers will launch final evaluations including a ground vibration test. This method, commonly used by sailplane manufacturers who were early to embrace composite structures, allows verification of characteristics like control surface stability. Following the ground vibration tests and final preparations, Flight Design will proceed with initial flight tests.