Eclipse Aviation, a pioneer in the ultra-light jet segment, filed for Chapter 11 protection today after failing to raise capital in the current economy. The company was using bridge loans and reduced output to preserve its business, and had not achieved profitability. It also had lawsuits pending from customers angry at Eclipse for raising the price of its jet prior to delivery.
Eclipse must be particularly disappointed with its timing, as the European Safety Agency approved the Eclipse 500 for sale in 37 European countries this past Friday. The company's CEO was hopeful that the certification would improve its ability to secure funding.