(BSNS WIRE) Mooney Aerospace Group Ltd. Sells All Stock of Mooney Airplane Co
pany to Allen Holding Finance Ltd.
Mooney Aerospace Group Ltd. Sells All Stock of Mooney Airplane Company to Allen
olding Finance Ltd.
Business Editors
KERRVILLE, Texas--(BUSINESS WIRE)--MASG--
Mooney Aerospace Group Ltd. (OTCBB:MASG), announced
today that it has sold all of the stock of Mooney Airplane Company,
formerly its wholly owned subsidiary, to Allen Holding Finance Ltd.
("Allen") a private investment company. As part of the transaction in
consideration for the stock, Allen agreed to assume all of the debt
owed by MASG to its secured debenture holders, an amount in excess of
$21 million, and invest $4 million in new capital for Mooney Airplane
Company by July 27, 2004.
According to J. Nelson Happy, MASG President and Board
Vice-Chairman, "The company's secured debenture holders declared their
notes in default. As a result, the MASG board accepted the offer to
purchase all of Mooney Airplane Company's stock by Allen, and the sale
was completed last Friday morning."
Because of the stock sale, MASG no longer has any financial
interest in Mooney Airplane Company.
"The board of MASG deeply regrets that the sale of Mooney Airplane
Company's stock was made necessary," Happy said. "However, Allen has
assumed over $21 million of the Company's debt owed to the secured
debenture holders, and has also agreed to provide $4 million of new
capital for the operating company within 30 days. This is good news
for Mooney Airplane Company, which will now have adequate capital to
meet its business plan," according to Happy.
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.
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Mooney Aerospace Group Ltd.
J. Nelson Happy
Louis Schreiner Field
Kerrville, Texas 78028
Phone: 830-792-2917
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