From:
To: "Je vacation" <jeevacation®gmail.com>
Subject: Fw: Epstein/Sikorsky Possible Transactions
Date: Tue, 02 Mar 2010 00:15:19 +0000
Importance: Normal
Jeffrey,
This is an email George sent to Howard,
It appears Sikorsky wanted to charge us 12.3m for an off shore machine,
I can only imagine the number they will present as a duplicate to you current S76,
See email below;
Sent from my BlackBeny® wireless handheld
From: "George Reenstra"
Date: Mon, 1 Mar 2010 15:42:09 -0500
To:
Cc: George Reenstra
Subject: Epstein/Sikorsky Possible Transactions
I received an e-mail this morning from Mike Jones. He tells me he has a buyer for S/N 750. If that is in fact correct, Jeffrey
will net $12.3 million from the sale of the aircraft which seems to be acceptable to him. Assuming that this occurs, here's
the scenario as I see it.
1. He will buy another C++ from us. He paid $11.7 million for 750 but it included flight time, extended warranty, and
additional pilot training. These probably have a value of $150,000. I do agree there was probably $1.5 million in extras
that went into the completion but apparently $1 million of that was in engineering so to duplicate 750, there is no need to
re-engineer it. All of that being said, and considering the current marketplace, I think we can cut a deal with Jeffrey
(assuming Mike's buyer is for real) for $12 — 12.1 million for a duplicate of 750, less the items I removed above. There
should be no reason why from the closing it takes more than 7 months to deliver which means we could either make 3rd
quarter or possible 4th quarter which will make everybody's accounting records happy. Howard, these are realistic
numbers driven by the marketplace.
2. As I discussed with you, Jeffrey is also thinking of buying an off-shore aircraft as a speculator. However, the price
you gave me of $12.3 million I'm embarrassed to give to him. We all know that people will not pay $12.3 million for off-
shore configured machines. I thought the goal was to get rid of these last ships. I don't expect them to be given away but
we need to be real.
3. D Model — The aircraft offered to Jeffrey in standard VIP is $12.1 million delivering last half of 2012 complete.
Retail price for a duplicate aircraft would be $14 million but realistically a buyer could get it for $13.5 million so he is $1.4
million below the actual selling price. If we were to configure a D to equal 750, the sale price would be somewhere in the
$13.2 million range. If he didn't have the discount, it would be somewhere in the $14.8 million range. I need to get
numbers to him.
I'm still waiting to get an answer if he will close on 750 and what it is going to take.
EFTA00763236
We have some opportunities now but we have to be aggressive in our pricing.
George Reenstra
Aircraft Services Group, Inc.
300 Corporate Drive, Suite 2
Mahwah, NJ 07430
Telephone: Ext.
Fax:
E-Mail:
EFTA00763237