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Technicians work on the structure of a very light jet manufactured at the Eclipse Aviation facility in Albuquerque on Dec. 18, 2007. (AP Photo/Heather Clark)

This undated photo provided by Eclipse Aviation shows the Eclipse 500 aircraft in flight. (AP Photo/Eclipse Aviation)
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Eclipse files for bankruptcy protection

Updated: Tuesday, 25 Nov 2008, 12:08 PM MST
Published : Tuesday, 25 Nov 2008, 9:07 AM MST

ALBUQUERQUE (KRQE) - Troubled Eclipse Aviation has filed for Chapter 11 bankruptcy protection to help it restructure under the U.S. bankruptcy code.

The filing, announced Tuesday, will give the Albuquerque-based company some temporary relief from its creditors.

According to a news release, the company plans to sell its assets to an affiliate of ETIRC Aviation of Luxembourg, which is currently Eclipse's largest shareholder.

The sale is subject to a public auction, which is expected to complete in January.

Until then, the company will operate with the help of financing from a group of shareholders and note holders.

It has been facing numerous financial pressures. Earlier this month, the company had to secure a round of financing in order to make payroll for its employees, and faces a dozen lawsuits from customers seeking more than $7 million in refunds after the company raised the price of its Eclipse 500 very light jet in June.