Flight Design has filed for insolvency due to a liquidity crisis. Outstanding debts and delayed payments from international customers totaling mid-six figures forced the German-based company to seek court protection on Dec. 3, 2024.
Preliminary insolvency administrator Marcello Di Stefano, from the Diligens law firm, expressed optimism about the company’s prospects after an initial review.
“The company’s order situation is good and the products have a very good reputation on the international market,” he said.
He added he is prioritizing financing operations to complete backlogged orders and maintain Flight Design’s EASA-certified production and design capabilities.
The company, headquartered in Hörselberg-Hainich, Germany, operates production sites in Sumperk, Czech Republic, and Kherson, Ukraine. The ongoing war in Ukraine disrupted operations, necessitating a shift of production to the Czech Republic. Deliveries resumed in mid-2024, but cash flow issues persisted.
Flight Design has delivered more than 2,000 aircraft since its founding in 1988. Known for the F-Series and CT-Series, the manufacturer remains active in 48 markets, with plans to expand production through licensing agreements in China.
Currently, 10 employees work in Germany, with 70 in the Czech Republic and 20 in Ukraine.
The insolvency stems from delayed payments by key customers and a failure to secure bridge funding or immediate investment, according to Di Stefano. A signed €1 million contract remains unpaid, and an offer from an investor fell through when the primary shareholder declined approval.
Di Stefano emphasized the importance of quick action to stabilize operations.
“We will do everything in our power in the coming days and weeks to find a permanent investor solution for Flight Design,” he said.
The restructuring effort aims to protect Flight Design’s legacy and deliver on its backlog of orders, according to company officials. Pilots and owners with existing contracts are advised to monitor developments closely as the company navigates this challenging period.
For updates, visit Flight Design’s website or the insolvency administrator’s page at Diligens Rechtsanwälte.
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