Finance, Taxes, Insurance
Fairchild fights for financing
Time is ticking, and Fairchild Dornier has only two months to find a strategic investor.

Time is ticking, and Fairchild Dornier has only two months to find a strategic investor. In the hands of a court-appointed administrator since filing for insolvency on April 2, the company’s prospects may have grown even bleaker when one of its biggest customers–GE Capital Aviation Services–withdrew an order for fifty 728 regional jets last month.

In a statement, the company said it had been unable to close with a strategic partner in the time available “as defined by German law.” The move came less than two weeks after chairman Charles Pieper acknowledged that Fairchild Dornier was in dire need of money. Insolvency money (the money that pays salaries) is now guaranteed until July 2. The company expects court insolvency proceedings to begin on June 17.

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