Columbia Aircraft Manufacturing Corporation

Client

Columbia Aircraft Manufacturing Corporation is a privately owned manufacturer of light general aviation aircraft. Columbia’s two composite aircraft are designed for greater speed and performance then other single engine piston aircraft in their class. Annual sales in 2006 was roughly $90 million.

Challenge

Bridge was appointed by the Board of Directors to improve the Company’s cash forecasting and management, develop and implement a plan to restructure financial obligations, evaluate current operating management, identify and implement cost improvements and assist in the evaluation of the Company’s strategic review of its business and restructuring plan. A Managing Director of Bridge was appointed as CRO and Bridge provided an interim management team (COO & CFO) to lead a course of cost reduction and reorganization strategies with the objective of stabilizing operations.

Solution

Bridge implemented solutions to preserve cash and stabilize operations, including inventory management and debt restructuring strategy to provide the Company with breathing room while other alternatives were evaluated and pursued. Bridge also implemented better business practices to improve customer support, control spending, increase accountability of management and improve communications. Bridge supported the Board and the Company’s Investment Bankers in restructuring efforts and related activities with potential investors.

Results

The Shareholder was not interested in providing the additional investment necessary to fund the completion of the turnaround, resulting in the Company electing to file Chapter 11 after identifying a potential stalking horse. An auction was held 60 days from the filing and key operating assets of the business were sold to Cessna.