GeeBee

To check the cowling, do a light test. Place a bright light in the lower backside of the engine compartment, place the airplane in a dark hangar and look through the front for "light leaks". If you can see light, air is leaking. Seal it up. Sometimes seats will push back and leak under pressure. Lycoming says in climb you should have a minimum of 4 inches of water pressure as measured on a water manometer on the high pressure side. If you don't have a manometer use an old airspeed indicator, 4" is about 90 mph. The formula is airspeed (MPH) squared divided by 1980.

I was providing a suggestion made by our friend WilliamR who is an investment banker. If you want to avoid the uncertainty of bankruptcy and insure the continuity of the existing company and the success of the new owners, it is one strategy.

In finance, words and terms are important. It avoids misunderstandings, disappointments, lawsuits and the tax audits.

Nothing prevents the existing owners from selling Mooney to LASAR for $1.00 if they want to avoid bankruptcy court.

Then it is not an investment. Anymore than when I buy an automobile from a dealership and pre-pay a maintenance or warranty program. It is a purchase plain and simple.

Are you receiving equity shares?

I appreciate your position but with regards to the current ownership, altruistic as they may be it will not produce results when you are in over your head. I learned that when I asked Jonny Pollack about PMA competition and he had no idea what he was talking about. When I tried to expand upon the issue he blew me off. He lost me right there as being in the deep end of the pool without knowing how to swim. Altruism is a bad reason to be in an equity position and an even worse reason to throw more money. Capitalism is ruthless, and Jonny is not a babe in the woods in that regard. The loss of equity is what bankruptcy requires and make no mistake, Mooney is bankrupt. The company has no value as a going concern and demands to be sold for as such.

Then why are you dissing them?

Any creditor can sue to force bankruptcy.

One, when they shut down, then started back up a few months later just about everyone who was called, returned. Sign of dedication to the company. Two, when I was able to get through with a need, I was supplied with an above and beyond answer, in one case including a photo of my airplane on the assembly line int 2004. Three, Last time I was at Kerrville, I did not see any expensive or late model personal vehicles in the parking lot. (It's a tell for how well your employees are doing) Four, I was employed by an airline that had a sterling reputation until bad management took it over and we suffered a 10 year decline to the point of bankruptcy. I and fellow employees kept our heads up but if you don't have the tools, you can't do your job. The new management came in and said (this is a direct quote), "We will no longer balance our books on the backs of our employees" We went from worst to first, the most financially successful airline in the history of mankind and with the results announced last Wednesday are pulling away from every. competitor. Because management completely changed the business paradigm of not trying to sell the cheapest seats but getting the most money for each seat sold by creating value in the product. Finally, and I am sure because of your location you are not aware of this, but the Kerrville area suffered flash floods Friday July 4 of this year. 107 deaths including 37 children swept away, some bodies still have not been found. I am sure not a person in the factory was untouched in some way personally being a tight community, but a part I ordered July 1 was shipped shipped out on Monday July 7. Dedication.

I think that is excessively harsh and un-necessary. The production and engineering employees of Mooney have conducted themselves in exemplary fashion under very trying circumstances not of their making. I am sure they are ready willing an able to step up when properly led by good management. I've seen this movie before and when properly led, employees respond faithfully and enthusiastically.

If they are paying more than for the old ownership to move their desks out and paint over their parking spots, it is too much.

I was part of a group that was attempting to buy Piper in the 1980s out of Chapter 11. I've also worked for an airline that declared Chapter 11. Bankruptcy need not be feared. In fact it is sometimes a preferable course of action. I believe the present problems at Mooney stem from an unwillingness to declare bankruptcy, clear the books and the decks. To be sure like any business decision it is not without risks. In Chapter 7 liquidation the judge could decide to sell it off in pieces rather than whole, doing whatever is in the best interest of the creditors. In Chapter 11 somebody can come in, make a deal with your creditors and own you for your debt. My guess is Mooney can be purchased out of bankruptcy for far less than the present ownerships is willing to sell it for. Likely as much as 80% less. That all said everyone involved in equity in Mooney right now should be wiped out because they never owned the company with intentions to develop the brand or to support the fleet. They bought it for other purposes, those plans have failed and they need to go away and not be awarded. That's capitalism. Only bankruptcy will do that. Piper (twice) in bankruptcy did not loose their production or type certificates. Neither did Beechcraft. Delta, United, American all kept operating just fine. Does it bring greater scrutiny of operations? Of course, but nothing that cannot be managed.

Without a debt or equity position, I don't see the value here. I'm not prepared to give money to Lasar to bail out the old Mooney owners who failed, newsletters and parts priority not withstanding. Better to let the thing liquidate in Chapter 7 and Lasar form a new company to buy the liquidation. It could be purchased cheaper than bailing out Jonny Pollack, his minions and the Chinese. The reality is, even if all the long body owners bought in, I don't see even 1 million being raised and to give it to the previous owners? No. They should all lose their equity, be removed entirely and a new owner use this capital to start anew. Give me that scenario and I will invest. I will say this right now. Do this plan and I will stroke a check for 10K tomorrow for shares. I will not pay a cent to buy out the old shareholders. This does not have to be complicated.

Foam is not just foam. Nor can you build up a seat with one density of foam and have it comfortable. It requires knowledge and skill to layer different densities at the right places. Yes, you can "schlock" foam onto a frame and yes it looks ok, it may even sit ok...for a while. Do a 4 hour flight on a single density foam seat and your aching back will notify you of your mistake. Because of the effort and time required, do it right with the right people and the right materials and your backside will thank you.