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Nimbus deal sours...

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Nov 25, 2001
News from AOPA:
A proposed air taxi company may not be able to complete its planned purchase of 1,000 Eclipse 500 jets, and Eclipse Aviation has publicly admitted that Eclipse made a mistake in accepting stock from the company. In the June issue of "Inc Magazine," Eclipse CEO Vern Raburn discussed the deal to provide a
company called Nimbus Group Inc. with the jet order beginning in 2004. Eclipse CFO Peter Reed told "ePilot" that the company signed a contract with Nimbus last August. Because of the downturn in the economy following the September 11 terrorist attacks, Nimbus could not come up with the cash needed
to meet deposit requirements. In addition to extending the deadline to June 30, Eclipse accepted stock in Nimbus that was to amount to $2 million. But Reed said that after the transaction was completed, the stock price meant that Eclipse would own 17 percent of Nimbus. Since the percentage was so high,
Eclipse attorneys informed company officials that under federal laws, they couldn't simply turn around and sell the stock as was originally intended. Eclipse then returned the stock. Nimbus still has until the end of June to come up with a reported $11.75 million, or Eclipse can terminate the contract. Eclipse also denied any insinuations that the Nimbus deal was used to manipulate
current or potential investors. The article "The Plane Truth" is available on "Inc's" Web site http://www.inc.com/incmagazine/articles/24256.html

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