ATG’s Javelin Program Running Out of Cash

 - December 18, 2007, 11:48 AM

Aviation Technology Group (ATG) of Englewood, Colo., laid off 40 of its 50 employees yesterday while it struggles to stay aloft to continue development of its two-seat Javelin very light twinjet. Last week, a company spokeswoman told AIN that the company was pursuing a bridge loan and long-term funding. She was optimistic that the bridge loan would close by last Friday, but apparently that deal fell through, forcing the layoffs. In the meantime, board member Horst Bergmann said the company continues to seek about $200 million in long-term funding via Citigroup, though it also plans to meet with partner Israel Aerospace Industries (IAI) in hopes of getting more investment from IAI. However, behind the scenes the prospects appear grim; Bergmann said ATG told dismissed employees that if they find another job “they should really try to grab it, and we are going to help them in doing that.” For now, Bergmann said the company “is still operating, but that may change one way or the other this week or this month.”