Newspaper article THE JOURNAL RECORD

Tests Could Mean Capital Infusion for Avacelle Inc

Newspaper article THE JOURNAL RECORD

Tests Could Mean Capital Infusion for Avacelle Inc

Article excerpt

By Bill May

Journal Record Staff Reporter

Patience may be its own reward, but officials of Avacelle Inc., 6912 S. Bryant Ave., are rather hoping for more cash.

It appears as if the design for the mufflers, which are intended to make older airplanes quiet enough to meet turn-ofentury noise standards, has been proved, and the cashow logjam which has created credit problems for nearly two years may be broken.

Now, the struggling company, in Chapter 11 bankruptcy since March 18 as its third incarnation as a developer of jet engine mufflers, could find the payoff for the decadeng battle for investment capital is now less than two months away. That is if the longaited results from a ground test of the noise reduction nacelle brings the hopedr response.

"Our board chairman (Leo Marquez of Albuquerque, N.M.) is overseas today, talking with a group of potential investors about that test and what it means," Executive Vice President Tom Stewart said Tuesday. "There are a couple more individual investors who have said they will put up some money if we can get a group to back us. I'm not at liberty to disclose who any of them are, but right now everything is beginning to look good.

"I feel that we could have some sort of definitive answer from all of them within the next 60 days."

What has brought about the latest spurt of optimism, a quality never lacking in the group which took a design and developed a working muffler, is results from a ground test of the nacelle conducted by a third party at the engine manufacturer's facilities.

Avacelle has designed a nacelle, or mufflerpe device, which will wrap around the engine of a Boeing 707-320 B and C series airplane and quiet the noise to standards which become effective in December 1999 in most airports around the world. Prototype models have been made, as have mocks which computer runs said were capable of reducing noise levels of the airplanes equipped with Pratt Whitney JT3D-3B engines.

Mathematical results from tests run in May by DyTec Engineering Inc., at the Pratt Whitney Test Facility in West Palm Beach, Fla., confirm these findings, Stewart said.

"We always knew that these nacelles would work," he said. "But, we've never had the analysis which we could show to investors or to buyers. Now we have. These results prove that our nacelle will bring the engines into Stage 3 compliance (the December 1999 standards)."

If investment capital starts flowing into the company's coffers, the next step will be to obtain a Supplemental Type Certificate from the Federal Aviation Administration, a long and costly process that probably will not be completed until late next year.

"There's no problem with that, it's just something that we must do before we can offer these nacelles for sale," Stewart said. "It's mostly to ensure that all our documents are in compliance, that we have dotted all the `i's and crossed all the `t's, all the administrative procedures have been followed and everything is above board.

"We'll also have to complete flight tests to their specifications to show that the nacelles will not interfere with the aerodynamics of the airplane and that they will not interfere with flying and operation of the plane.

"Our tests proved that."

Analysis of the test results show the nacelles achieve the desired noiseducing effect, require no deting of takeoff power setting of the JT3D-3B engines and are economically viable, a company statement read.

The statement, quoting Alan Marsh, president of DyTec Engineering Inc. of Huntington Beach, Calif., also said the nacelles cause only a minimal change in operating procedures. …

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