Adam Needs an Immediate $25 Million
Adam Aircraft faces "liquidation" if it doesn't raise $25 million by the end of January. In a letter to shareholders, CEO John Wolf said that without the immediate cash injection, Adam will have to take action to meet the terms of agreements with "senior lenders," according to the Wichita Eagle. The lenders were not identified. Adam spokeswoman Shelly Simi told the Eagle the money crunch has to do with financial obligations coming due. "It's like every other loan or any other type of funding," said Simi. "There's always stipulations or requirements and that's what we're working through as every other company would."
Wolf said in the letter that securing the $25 million (the full total was $30.5 million but $5.5 million has already been raised) will give the company time for its financial partner Citibank to find the $100 million needed for long-term stability. He said that if the first $30 million isn't raised there's little hope investors will recover any of their money. But he's also hopeful that if the money is found, Adam will rebound on the certification and sales of its A500 twin and the future sales of its A700 light jet.