After insolvency proceedings were opened over the assets of Flight Design general aviation GmbH on March 1, 2025, DiLigen's partner Marcello Di Stefano succeeded in selling the Eisenach-based aircraft manufacturer and its foreign subsidiaries to a Chinese investor as part of an asset deal. The parties have agreed not to disclose the purchase price. Flight Design has been a leading global manufacturer of light aircraft for decades and employed around 600 people in the Ukrainian city of Kherson until the outbreak of war. Since then, aircraft production has been rebuilt in Sumperk, Czech Republic, due to the war. In December 2024, however, Flight Design general aviation GmbH with around 100 employees belonging to the Group had to file for insolvency due to a lack of liquidity. Marcello Di Stefano was appointed provisional insolvency administrator and has continued operations since then. In the end, Shang Gong Group Co Ltd from Shanghai prevailed among several bidders. Di Stefano expects to achieve a very good rate for the insolvency creditors in the opened proceedings.
Di Stefano, who specializes in insolvency and restructuring law, was supported by his team led by lawyer Robert Jödicke. The M&A process was successfully conducted by a Deloitte team led by Dr. Robert Tobias, Dr. Fabian Meißner, Florian Tretau and Alican Mermer.
Official press release:
Shang Gong Group takes over aircraft manufacturer Flight Design general aviation GmbH from Eisenach
- Marcello Di Stefano, insolvency administrator of aircraft manufacturer Flight Design general aviation GmbH, is selling its assets to a German subsidiary of Shang Gong Group Co Ltd (SGG) following an intensive investor process.
- The Shang Gong Group, a globally active listed industrial company based in Shanghai, is also the owner of the US aircraft manufacturer ICON, among others.
- The Shang Gong Group is providing Flight Design with the working capital required for the further development of the company and in particular for aircraft production in the Czech Republic.
"We are pleased to take over all of Flight Design's assets and are confident that Flight Design will soon regain its leading role in the development and construction of light aircraft worldwide," says Mr. Yongwu Chen, Vice President of Shang Gong Group, who has lived in Germany for over 20 years. "We will surprise our customers with a significantly increased production in the Czech Republic and a shortened delivery time", announces Mr. Chen.
"In a short but intensive and constructive transaction process, we have succeeded in selling Flight Design and its subsidiaries to a strong, globally active strategic investor. This means that the expertise and outstanding aircraft of one of the global market leaders in the field of light aircraft can be preserved, and the insolvency creditors can also expect a very good quota," says Di Stefano, a specialist lawyer for insolvency and restructuring law.
The entire management team of Flight Design and the production company Flight Design CZ is also happy about the new investor. "The Shang Gong Group is a modern and progressive industrial company. With the takeover of Flight Design, things will move forward again for customers and employees. The company will also benefit from considerable synergy effects with other Shang Gong Group projects," the Flight Design team said in unison.
About the insolvency
The managing director of Flight Design general aviation was forced to file for insolvency in early December 2024 after three international customers failed to pay receivables in the seven-figure range. This had led to a liquidity bottleneck at the company. Unfortunately, the managing director's attempts to find alternative financing methods were unsuccessful.
The insolvency administrator Marcello Di Stefano succeeded in continuing business operations on a transitional basis and, together with Deloitte's M&A team, successfully concluded the investor process within three months and two weeks.
Press:
https://www.aerokurier.de/motorflug/nach-insolvenz-chinesen-uebernehmen-flight-design/
https://flyer.co.uk/flight-design-sold-to-chinese-owner-of-icon-aircraft/