SHAH ALAM: Troubles at MD Helicopters. MD Helicopters is in the spotlight again with news that its CEO Lyn Tilton has resigned from the company. She resigned from the company as a court ordered her to sell the company to repay her debts in her holding company.
From Flight Global
Lynn Tilton has resigned as chief executive of MD Helicopters after a bankruptcy court orderer that she sell the aircraft manufacturer to repay debts to her holding company Patriarch Partners.
Patriarch Partners defaulted on $1.7 billion in loans owed to financier Zohar, according to a report in The Wall Street Journal. Zohar sued the company to force it to sell off its businesses, including MD Helicopters, to repay the debt. MD Helicopters confirmed Tilton’s resignation to FlightGlobal.
Flight Global noted that
Despite losing its chief executive and being caught in a bankruptcy fight, MD Helicopters says it is a ”viable, thriving, promising businesses”.
”MD is fully executing all of its military and commercial contracts as well as supporting worldwide operations through its global network of field service personnel and authorised sales, service and distribution partners”, the company says.
MD Helicopters is basically saying to its customers that its business as usual for the company, even with the disruptions caused by the Covid-19 pandemic. The disruption will likely delay the deliveries of our M.D. light scout attack helicopters. With certification and training not yet done, the travel disruptions caused by the pandemic will naturally pushed back the delivery.
Of course, with the economic outlook not looking good as well it is likely that some will also called for the cancellation of the contract altogether. Whether or not this a good idea is beyond me.
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