Salvation may be at hand for troubled Czech engine maker from two investors

Published: 10/4/1999

Final stage negotiations are taking place between US investor, Robert Fessler, Tony Ryan, founder of Ryanair and the Czech government, to bail out Walter, the troubled Czech engine manufacturer. It is believed that a deal will be signed shortly with a Czech company created by Fessler and Ryan, for a 94% stake. The takeover negotiations are believed to involve a debt-for-equity swap. Both Saab and British Aerospace have endorsed the deal, although neither has provided financial backing. They hope to channel work into Walter through Volvo Aero, as part of their bid to sell Gripen fighters to the Czech Republic. If the deal goes through, it is expected that Walter will be managed by Fessler/Ryan, but establish close working ties with Volvo on an industrial level, possibly through the creation of a Volvo engineering design centre at Walter.

Article ID: 934