Mooney Aerospace Group, Ltd. Plan of Reorganization Approved by Bankruptcy Court; New Trading Symbol Assigned; Mooney Airplane Company Stock to Be Reacquired
12/15/2004 11:11:00 AM
KERRVILLE, Texas, Dec 15, 2004 (BUSINESS WIRE) -- Mooney Aerospace Group, Ltd.'s (OTCBB:MASGQ.OB) Plan of Reorganization was approved by the U.S. Bankruptcy Court for the District of Delaware today. A court order has been submitted to the judge for signature. As of tomorrow, December 15, 2004 the company will have a new trading symbol, MNYG.OB. As part of the plan, the company will reacquire the stock of Mooney Airplane Company from its current owner, Allen Financial Holdings, Ltd.
As part of the plan, existing shareholders will be issued new shares of Mooney Aerospace Group, Ltd. common stock based on a reverse split of 3223 old MASG shares for one share of new common stock. (Fractional shares will be issued as part of the plan.)
J. Nelson Happy, President and CEO of Mooney Aerospace Group, Ltd., commented: "We are very pleased to have the bankruptcy proceeding behind us. We now have a fresh start without old financial problems diverting management's attention from our core business, which is making and selling airplanes and thereby enhancing shareholder value. I am especially pleased to welcome Gretchen Jahn, the recently appointed CEO of Mooney Airplane Company. She has already shown herself to be a strong leader of the Mooney team. We are looking forward to 2005 as a year of consolidation of the business improvements initiated since our acquisition of the Mooney assets in 2002."
According to Mr. Happy, "Special thanks are due to our creditors, who approved a plan of reorganization which allowed our existing shareholders to continue to have an equity stake in the company, although smaller than before. This is unprecedented in my experience. Our existing shareholders should submit their shares to our stock transfer agent, American Stock Transfer and Trust Co., 59 Maiden Lane, Plaza Level, New York, N.Y. 10038; phone 800-937-5449, by mail or through their stock broker."
The plan imposes two restrictions on sale of the new stock, which is otherwise free trading. No sale of the stock may occur until 90 days after the plan's effective date. Thereafter, no more than 10% of each shareholder's total holdings can be sold per month. Complete details of the Plan of Reorganization can be read as part of the Company's most recent quarterly report filed with the Securities and Exchange Commission.
About Mooney Aerospace Group Limited
Mooney Aerospace Group, Ltd. is a general aviation holding company located in Kerrville, Texas. Its operating subsidiary, Mooney Airplane Company, currently sells five models of the M20, the highest performing four-place single engine piston-powered aircraft, now available with the Garmin G-1000 glass panel display. Since its inception in 1946, the company has manufactured and delivered more than 10,000 aircraft worldwide. Today, 7,000 customers in the United States and 1,000 more overseas fly these proven, high-performance airplanes. For more information, visit www.mooney.com.
This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 (the "Act"). In particular, when used in the preceding discussion, the words "plan," "confident that," "believe," "scheduled," "expect," or "intend to," and similar conditional expressions are intended to identify forward looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, market conditions, the availability of components and successful production of the Company's products, general acceptance of the Company's products and technologies, competitive factors, timing, and other risks described in the Company's SEC reports and filings.
CONTACT:
J. Nelson Happy
165 Al Mooney Road, N.
Kerrville, Texas 78028
(830) 792-2917
nhappy@mooney.com
SOURCE: Mooney Aerospace Group, Ltd.
Mooney Aerospace Group, Ltd., Kerrville
J. Nelson Happy, 830-792-2917
nhappy@mooney.com
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