Diamond Aircraft, with a large plant located in London Ontario, is lining up for money from the federal and provincial goverments and has indicated that the company's future will be very uncertain without the bailout loans. The Financial Post described the company as "in rough shape".
It seems that piston sales have been pretty slow though the ongoing recession and the company has been unable to move its D-Jet single engined jet development project forward, due to lack of investment money, despite a firm 230 orders for the $1.89M per copy aircraft.
To get the D-Jet into production the company has located $20M in private investment, plus a committment of an additional $35M from the Government of Ontario. The Ontario government investment is contingent on Diamond also getting an additional $35M from the federal government. A decision by Industry Canada on that was still pending in late March, due to the government conducting "due diligence on the loan".
If both the federal and provincial loans are provided then, combined with funds already provided, the total provincial and federal government investment would be $100M.
Diamond Presdent and CEO, Peter Mauer indicated "If we don’t get the funding from the federal government, it puts us in a difficult situation. If the D-JET, for example, in a worse case scenario, were not to continue it would have a negative impact on the rest of the company’s operations. [The company debts are] at a level that would be very difficult to satisfy out of piston sales,” he said. “I’ll let you do the extrapolation."
* Financial Post - Planemaker Diamond in rough shape
* AvWeb - Diamond's Future Contingent On Loan?