IAI and Aviation Technology Group were developing the Javelin training jet.
Israel Aerospace Industries Ltd. (IAI) today announced that Aviation Technology Group Inc. (ATG), its US partner in the joint development of a new training jet, has suspended the program because of difficulties in raising capital for further development.
The trainer is based on the Javelin Mk 10 executive jet. As part of the joint development IAI invested $10 million in ATG and gave the company a $15 million loan through its US subsidiary, Israel Aircraft Industries International Inc. IAI owns 12.2% of ATG. IAI has a priority lien on all ATG assets.
IAI added that as a result of the halt in development of the Javelin trainer, the company may write off all or part of its investment in ATG.
Published by Globes [online], Israel business news - www.globes-online.com - on December 20, 2007
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