Sun, Apr 06, 2008
Hearing On Sale Expected This Week
They may be down... but not necessarily out. Less than two
months after Adam Aircraft Industries announced it would enter
Chapter 7 liquidation, a possible buyer has emerged that might
allow the A500 inline piston twin aircraft, and its A700 VLJ
sibling, to return to the skies.
The Denver Post reports the trustee in the bankruptcy case
agreed Saturday to sell Adam to an entity called AAI Acquisition
for the sum of $10 million, plus settling up with some of the
planemaker's other creditors. Paul Zarnowiecki at the Washington,
DC-based law firm Orrick, Herrington & Sutcliffe LLP is listed
as the contact person for the buyer.
As ANN reported, Adam
Aircraft filed for liquidation February 19, eight days after the
company shut down its operations in Denver and Pueblo, CO. Hints of
significant problems at Adam came to light the month before, with
the company's announcement of layoffs for close to 300
workers, and the suspension of operations in Pueblo and Ogden,
UT.
At the time, the company cited the need to overcome past issues
with the certification of its A700 very light jet, and obtain
capital to see that program through to TC, as reasons for the
decision.
Adam delivered about seven A500s to customers in 10 years
of operations, and had pinned its hopes on the A700 -- which
had attracted far more orders than the A500, including
several from air taxi operators, and also shares several
components with its piston-powered sibling.
A hearing on the sale is to occur Wednesday, the Post added. It
is believed AAI Acquisition's bid was the only qualified one
received; it's not known yet whether the new owner will hire former
Adam workers.
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