Adam Aircraft Declares Bankruptcy
To no oneís surprise, Adam Aircraft quietly filed for Chapter 7 (liquidation) bankruptcy last Friday and the next question is who will be in the running for the assets. In news releases prior to the suspension of operations last week, Adam claimed to have orders for its A700 very light jet and A500 piston twin in the order of $1 billion, although itís questionable how firm many of those orders were. But the company was approaching certification of the A700 (it completed environmental tests in December) and the A500 was in limited production. No details have been released on the timing of the bankruptcy auction or who might be involved. Regardless of who might try to pick up the assets, the plundering of the companyís skilled labor began shortly after the company suspended operations. Cirrus Design held a meeting in Denver last week to see if it could lure workers to Duluth, something itís been having problems with recently. The shortage of engineers, in particular, is hampering work on the companyís jet project and light sport aircraft. Bombardier has also been trying to attract workers.