News for 'MASG' - (Mooney Aerospace Group Ltd. Sells All Stock of Mooney
Airplane Company to Allen Holding Finance Ltd.)
KERRVILLE, Texas, Jun 1, 2004 (BUSINESS WIRE) -- 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.
Mooney Aerospace Group Ltd.
J. Nelson Happy
Louis Schreiner Field
Kerrville, Texas 78028
Phone: 830-792-2917
SOURCE: Mooney Aerospace Group Ltd.
AI
