Money Woes Ground Dutch Aircraft Firm Fokker Forced To Seek Bankruptcy After Government Loans Run Out

Dutch airplane maker Fokker NV announced Friday that it would stop making aircraft and put thousands out of work after government loans ran out and investors failed to step forward.

The 76-year-old company that gave the World War I Red Baron his wings filed for bankruptcy for its three main divisions. All 5,664 of the divisions’ workers will lose their jobs, but 950 will be offered jobs with what’s left of Fokker.

“Until the last minute, and by that I mean early this morning, we have been working to keep Fokker going. We have not succeeded,” Fokker Chairman Ben Van Schaik said.

Some of Fokker’s businesses, those with the best chance to make money, will be bundled under a new company, Fokker Aviation BV. The new company will no longer make aircraft, but will encompass its aircraft support business, space and systems division and other units.

Fokker will retain 350 workers for three months to complete building 70 final planes.

The company has been fighting for survival since January when majority shareholder Daimler-Benz refused to provide any more money to service debts. Since then, potential investors from the aerospace industry have considered bailing out Fokker, but none made a commitment.

The government has in recent years pumped millions of dollars into the aircraft maker, which suffered a record $394.5 million loss in the first half of last year.