Sole Bidder AAI Wins Adam Aircraft Assets

 - April 11, 2008, 11:59 AM

AAI Acquisition will close on the purchase of bankrupt Adam Aircraft Industries on April 15, having made the only bid for the assets of the composite aircraft developer. AAI Acquisition was formed by Russian company Industrial Investors, a private equity asset management company based in Moscow and London, along with a group of former Adam Aircraft employees. Industrial Investors owns two aviation projects: Velvet Skylines, a charter broker; and Russian air-taxi company Dexter. AAI is paying $10 million for the Adam Aircraft assets, which include prototype and unfinished A500 piston twins and A700 VLJs, manufacturing equipment, tools, parts inventory, the A500 FAA type certificate, patents, trademarks and various documents. AAI is also assuming some costs associated with contracts that are part of the purchase agreement. “We plan to revive Adam Aircraft’s operations,” said Dmitry Shokhin, vice president of AAI Acquisition, “including continuing the process of certification for the A700 jet.” Asked why Cirrus Design did not bid on Adam Aircraft, chairman and CEO Alan Klapmeier said, “Because Cirrus needs to focus its financial resources on its jet program.”