Mooney Aerospace Group Ltd. Sells All Stock of Mooney Airplane Company to Allen Holding Finance Ltd. 6/1/2004 12:10:00 PM
KERRVILLE, Texas, Jun 1, 2004 (BUSINESS WIRE) -- Mooney Aerospace Group Ltd. (MASG) , announced today that it has sold all of the stock of Mooney Airplane Company, formerly its wholly owned subsidiary, to Allen Holding Finance Ltd. ("Allen") a private investment company. As part of the transaction in consideration for the stock, Allen agreed to assume all of the debt owed by MASG to its secured debenture holders, an amount in excess of $21 million, and invest $4 million in new capital for Mooney Airplane Company by July 27, 2004.
According to J. Nelson Happy, MASG President and Board Vice-Chairman, "The company's secured debenture holders declared their notes in default. As a result, the MASG board accepted the offer to purchase all of Mooney Airplane Company's stock by Allen, and the sale was completed last Friday morning."
Because of the stock sale, MASG no longer has any financial interest in Mooney Airplane Company.
"The board of MASG deeply regrets that the sale of Mooney Airplane Company's stock was made necessary," Happy said. "However, Allen has assumed over $21 million of the Company's debt owed to the secured debenture holders, and has also agreed to provide $4 million of new capital for the operating company within 30 days. This is good news for Mooney Airplane Company, which will now have adequate capital to meet its business plan," according to Happy.
Mooney Aerospace Group Ltd.
J. Nelson Happy
Louis Schreiner Field
Kerrville, Texas 78028
Phone: 830-792-2917
SOURCE: Mooney Aerospace Group Ltd.
Mooney Aerospace Group Ltd., Kerrville
J. Nelson Happy, 830-792-2917
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