Get breaking news alerts via email

Click here to manage your alerts
Utah aviation company reaches agreement with creditors

First Published May 04 2012 07:43 am • Last Updated Aug 28 2012 11:32 pm

Groen Brothers Aviation Inc. said it has reached an agreement with creditors on a financial reorganization that will resolve the company’s debt obligations, which exceed $170 million.

The Salt Lake City-based company will transfer substantially all of its assets, notably all of its technologies and associated patents into a new private entity to be formed by GBA, which is expected to be called Groen Brothers Aviation Corp. Creditors, in turn, have agreed to exchange most their debt instruments for a majority ownership of common stock in GBAC, which permits 4 percent of GBAC common stock to remain with the company.

Join the Discussion
Post a Comment

GBAC will become the operating company engaged in the development of gyroplane and gyrodyne technology developed by GBA, company officials say. GBA will become a "non-operating" entity that will derive its revenue and value from its interest in GBAC, enabling GBA’s common shareholders to retain a stake in the continued development of GBA technology.

"We are very fortunate to have creditors who believe in moving GBA technology development forward, instead of requiring a liquidation of assets, as has been commonly witnessed in the aviation industry over the past five years," said company director Robin Wilson.

Groen Brothers Aviation Inc. has been developing gyroplane technology since 1986, powered by Rolls-Royce gas turbine engines. The company’s Hawk 4 Gyroplane was used extensively for aerial security patrol missions during the 2002 Olympics in Salt Lake City.

Copyright 2014 The Salt Lake Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Top Reader Comments Read All Comments Post a Comment
Click here to read all comments   Click here to post a comment

About Reader Comments

Reader comments on sltrib.com are the opinions of the writer, not The Salt Lake Tribune. We will delete comments containing obscenities, personal attacks and inappropriate or offensive remarks. Flagrant or repeat violators will be banned. If you see an objectionable comment, please alert us by clicking the arrow on the upper right side of the comment and selecting "Flag comment as inappropriate". If you've recently registered with Disqus or aren't seeing your comments immediately, you may need to verify your email address. To do so, visit disqus.com/account.
See more about comments here.
Staying Connected
Contests and Promotions
  • Search Obituaries
  • Place an Obituary

  • Search Cars
  • Search Homes
  • Search Jobs
  • Search Marketplace
  • Search Legal Notices

  • Other Services
  • Advertise With Us
  • Subscribe to the Newspaper
  • Access your e-Edition
  • Frequently Asked Questions
  • Contact a newsroom staff member
  • Access the Trib Archives
  • Privacy Policy
  • Missing your paper? Need to place your paper on vacation hold? For this and any other subscription related needs, click here or call 801.204.6100.