Company formed to bring Eclipse out of bankruptcy

Phil Friedman announced the formation of New Eclipse Acquisition (“New Eclipse”) which intends to bid for the assets of Eclipse Aviation Corporation in the Chapter 7 bankruptcy proceedings. Mr. Friedman is an experienced aerospace executive who has turned around several companies over his 28 year career. He is currently CEO of Harlow Aerostructures in Wichita, KS which manufactures electro mechanical and structural assemblies for many OEM's in the aircraft industry. Peter Reed, former CFO of Eclipse for seven years, is part of Friedman's team and has actively participated in developing the New Eclipse business plan over the past several months.

“I have been studying the Eclipse situation for over a year,” said Friedman. “It is sad that the company has ended up in bankruptcy, but I believe there is an excellent business opportunity going forward if managed correctly. Our plan is to take the first 24 months to stabilize the fleet of 259 aircraft and restore the brand. All aircraft will be brought up to the current type certification level so that ongoing service and support is as efficient as possible. We will also retain a significant number of engineers to improve aircraft reliability, upgrade the avionics suite, and focus on reducing manufacturing costs to industry benchmark levels. We will open several smaller service centers around the country to provide more convenient access to service the fleet and will also provide pilot training here in Albuquerque.”

“Employment levels over the next 24 months should be about 400 people as we upgrade and service the fleet,” said Friedman. “After the engineers have upgraded the avionics to the latest functionality, reduced manufacturing costs, and we have re-established relationships with the supplier base, we plan to restart new aircraft production in 2011 at modest levels, approximately 100 aircraft per year with pricing in the $2.4 million range. At that point employment will increase to approximately 600 people.”