Time, Money Run Out For Adam Aircraft
February 20, 2008 — Adam Aircraft, a one-time promising aircraft manufacturer with innovative, futuristic designs, filed for Chapter 7 bankruptcy on Friday, February 15, with the U.S. Bankruptcy Court for the District of Colorado. Documents the company filed show assets between $1 million and $10 million, with liabilities of $50 million to $100 million and up to 999 creditors.
Last week the company, located on Centennial Airport in the Denver suburb of Englewood, announced it suspended operations due to a failure to secure $30.5 million of financing. By week's end, papers for Chapter 7 were filed, meaning Adam's nonexempt property will be sold and the proceeds distributed to its creditors.
Adam Aircraft's A500 twin-engine piston aircraft received initial FAA Part 23 type certificate in 2005 and an amended TC, along with a FAA production certificate, in 2006. Adam's A700 twin-engine jet received its first FAA Type Inspection Authorization (TIA) in December last year, allowing flight-testing for FAA certification credit.
Before the end of 2006, the company revealed it needed to acquire additional capitol to continue its A700 certification program, despite a claimed order backlog of more than 400 aircraft amounting to nearly $1 billion.