Eclipse Aviation Corp., which makes the 6-seat Eclipse 500 very light jet in Albuquerque, said it will not contest a motion by senior secured creditors to convert Eclipse’s bankruptcy proceedings to a Chapter 7 liquidation.
Eclipse had already furloughed its remaining 800 employees on Feb. 18 because of the delays in financing negotiations. At that time, however, the company said it was a temporary move and it expected the deal to close and affected employees to return to work.
In a letter to employees on Feb. 24, Eclipse executives said the furlough had converted to a layoff effective as of Feb. 19, meaning no salaries would be forthcoming for paychecks due on March 5 and all benefits would end as of Feb. 28.
Source: The Business Review (Albany)
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