Financial advisory consulting and services firm Development Specialists Inc. (DSI) has set a September 7 deadline for bids for the assets of defunct Aerion Corp. DSI was appointed to oversee the sale of the assets of Aerion, which ceased operations in June 2021 after a nearly two-decade quest to bring a supersonic business jet to market.
Through a court-appointed insolvency proceeding similar to that of the bankruptcy process, the sale is being conducted under Florida statutes instead of federal laws. Joseph Luzinski, senior managing director of DSI, is overseeing the bid process. Proceeds from the sale of the assets are to go to creditors. GE Aviation had the largest claim, which in original court documents was estimated at about $32 million, with Spirit AeroSystems and Boeing collectively owed nearly $8.5 million.
Much of Aerion’s assets surround its numerous patents. There also had been some fixed assets such as computers, software, and wind tunnel models. DSI late last year was fielding interest as it tried to grasp the value of the assets. “There are no valuations for these types of assets there’s no Kelley Blue Book or comps. There is no clear indication of what the assets are worth,” Luzinski had told AIN, saying the market will determine that.
Under a court-approved process that was set this summer, written offers from qualified bidders are due by September 7 at 4 p.m. EDT to DSI and the assignee’s counsel, Baker & Hostetler. An auction date has been set for September 16.
“Our goal is to sell all of the assets as a package or sell them in lots to maximize the recovery for creditors,” said Luzinski.