The lightest end of the business jet market gained another player last month as Adam Aircraft Industries of Englewood, Colo., unveiled a mockup of a twin-engine jet based on its all-composite Adam 500 centerline piston twin. Powered by Williams International FJ33 turbofans, the $1.995 million, six-seat Adam 700 is expected to make its first flight in about 10 months and be in the hands of its first customers by late 2004.
Now that AAI Acquisition has purchased the assets of bankrupt Adam Aircraft, the number-two priority is to finish the FAA certification process for the A700 very light jet, according to Jan D’Angelo, the former director of international and fleet sales for the aircraft manufacturer. D’Angelo is part of a group of former Adam Aircraft employees that joined with Russia’s Industrial Investors to form AAI Acquisition and buy Adam Aircraft.
The sale of Adam Aircraft’s assets took place as scheduled on Tuesday, according to Jan D’Angelo, the former senior vice president for international and fleet sales for the aircraft manufacturer.
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.
The U.S. Bankruptcy Court for the District of Colorado announced on Friday that the trustee for the assets of bankrupt aircraft manufacturer Adam Aircraft accepted the sole bid of $10 million from AAI Acquisition for the company’s combined assets.
Adam Aircraft’s suspension of operations on February 11 was followed by a Chapter 7 bankruptcy filing on February 15, which means the company will be liquidated. Although Lynn Tilton, CEO of MD Helicopters, suggested at February’s Heli-Expo that her company’s financial backers might be interested in purchasing Adam’s assets, no developments along those lines have taken place.
The next chapter for bankrupt Adam Aircraft will start Friday, April 4, when the start-up aircraft manufacturer’s bulk assets are set to be auctioned. According to an Adam Aircraft bankruptcy Web site set up for creditors and “other interested parties,” those hoping to buy the company have until Thursday, April 3, to submit a minimum bid of $10 million.
Among the bits of information flowing from the February 15 bankruptcy of Adam Aircraft Industries is a petition filed by Adam attorney Frances Cetrulo and acting secretary and CFO Christopher Naro warning of an “imminent danger” to the public resulting from the company’s sudden shutdown.
On February 15, Adam Aircraft voluntarily filed Chapter 7 bankruptcy in the U.S. Bankruptcy Court for the District of Colorado, bringing an official end to the Englewood, Colo.-based start-up aircraft manufacturer after it ceased operations on February 11 (see page 1). In the filing, Adam Aircraft lists more than 200 creditors, $50 million to $100 million in liabilities and between $1 million and $10 million in assets.
Avidyne is close to launching components for a next-generation integrated avionics system that the company is hinting will feature ultra-high-resolution glass displays, WAAS GPS receiver, flight management system and the company’s recently TSO’d navcom radios.