Air Transport World

Fairchild seeks investors, finalizes plans with IAI on 428JET.(Fairchild Aerospace, Israel Aircraft Industries)(Brief Article)(Statistical Data Included)

Fairchild Aerospace President Jim Robinson confirmed reports that the company has dropped plans to raise around $300 million through a bond issue in favor of soliciting capital from banks and other lending institutions. Asked about the change, he said, "When we floated this idea the bond market looked good. It doesn't now. So we are looking elsewhere." He disputed published reports that Fairchild has a cash-flow problem.

Robinson said Fairchild is negotiating with several potential equity partners who could invest $300 million in the manufacturer's ongoing jet programs. An expected announcement on those partners was not made during the ERA meeting in Paris. Fairchild must obtain outside funding in order to receive around $350 million in loan guarantees from state and federal branches of the German government, Robinson conceded. …

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