Raytheon Might Move On Flight Options

[King Nothing]

Raytheon may move to take control of Flight Options LLC, less than a year after Raytheon's Travel Air fractional ownership arm and Flight Options formed a joint venture. According to Raytheon's latest Securities and Exchange Commission filing, it's invested $83 million in the merger, including a $20 million loan to Flight Options. The merger created a company with 200 aircraft and 2,000 owners. But since the partnership was formed in March of this year, Raytheon's SEC filing says that Flight Options has been unsuccessfully seeking more equity financing and there are no guarantees it will find more funding. If Flight Options can't find the money it needs, Raytheon says it might offer to exchange the Flight Options debt for additional equity in the joint venture, effectively taking operational control of the fractional business. The SEC filing says taking over Flight Options wouldn't affect the company's financial position other than to reduce its backlog of aircraft by filling an $850 million order received from Flight Options earlier this year. Raytheon spokesman Tim Travis declined to elaborate and no one at Flight Options was available to respond to our inquiries.

 

[Dep676]

Just curious where you got this quote from? If it is a quote. I know there was something like this in AIN.

 

[vixin]

Here is where you can find it!


http://investor.raytheon.com/edgar.cfm

then click on this link
"11/06/02 10-Q Quarterly Report "

 

[fracman]

Raytheon takeover is imminent

Spoke with a FLOPS owner (former RTA) this week who indicated the takeover was in process and the formal announcement would happen soon.

We'll see...

 

[learflyer]

Hey, Fracman, how can you believe an owner? They are usually the last to know things like this. More than half of the owners I fly around don't even know the name of the new company, (Flight Options, llc.)

 

[fracman]

Like I said - we'll see.

All just rumors at this point.

 

[Dep676]

As long as the paycheck still keeps coming and we don't get stuck with the 6 and 4 schedule.

Time will tell.

 

[King Nothing]

Dep676, I got that info from www.avweb.com but I also get AIN alerts and they've had some info as well.

KN

 

[LXJ31]

I'm not the quickest legal mind in the room but after reading that I'm reminded of the phrase "Many slip 'twix cup and lip."

The basic question is who gets left holding the bag on the (devalued) airplanes: Raytheon? FLOPS? Owners? After being handed this bag, you'd think they might want to sue someone...anyone. This scenario just doesn't sound like it would come off like a snappy clean breakup. More like trying to ditch a psycho ex-girlfriend who cries all the time, follows you around, sends you dead flowers and says things like "But you said 'Forever'...wahhhhhhhh!!!" (This happen to anyone else?)

Anyway, the point is this scenario sounds like it has lawyers, courts and money written all over it.