A federal judge has granted Eclipse Aviation Corp.'s request to restructure under Chapter…
ALBUQUERQUE (KRQE) - The future looked bright for Eclipse Aviation in 2003 and 2004
when the state of New Mexico and the city of Albuquerque stepped in
with generous tax breaks and investments.
Those investments are now at risk as Eclipse, which already
had fallen on hard times, today announced it doesn’t have the
cash to pay employees for their last two weeks of work.
The actual cash value of taxpayer investments in Eclipse is
nearly $20 million. At the state level the New Mexico State
Investment Council bought a $10 million stake in the company in
2003 and later invested an additional $9 million.
The city of Albuquerque issued $45 million in industrial
revenue bonds 2004, but the city's Economic Development Department
said Eclipse, not the city, is responsible for repaying those who
purchased the bonds.
The city also granted $770,000 in property tax abatements.
For now Peter Mitchell, the city's economic development
director, said it's premature to give up on Eclipse.
"We're going to do everything possible to keep them here,"
Mitchell told KRQE News 13. "They've been a super tenant for
Albuquerque.
"They've exceeded the job numbers that they initially
projected, and so we hope to do everything we can to keep them."
But if Eclipse is unable to stay in business, the city could
be out hundreds of thousands of dollars.
New Mexico taxpayers are not the only large stakeholders in
eclipse. Microsoft chairman Bill Gates is said to have a
major investment in the company.
Eclipse Employees and Family
If you would like to talk to us about the situation, please contact the KRQE Newsdesk (505) 764-5240 or email us: krqenewsproducers@krqe.com. You can remain anonymous if you wish.
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