-T / T / +T | Comment(s)

Tuesday, February 12, 2008

Adam’s Future Depends on Financing

In the latest chapter in Adam Aircraft’s troubles, the company has suspended all operations pending explorations of all its options to gain additional financing, Spokesperson Shelly Simi told RAN's sister publication VLJ Report last night. In mid January, Adam, run by veteran regional aviation executives, imposed layoffs and shortly thereafter sent a letter to investors saying it would be forced to liquidate if it fails its two latest attempts at financing before the end of January. The company has a backlog of 400 for the A500 twin piston and the A700 very light jet. Adam is seeking between $75 million and $150 million in long-term financing with the help of Citibank.
“In a difficult but necessary move, Adam Aircraft Industries suspended operations today at its facilities in Colorado,” said its release posted on its web site last night. “This measure was required due to the inability of the company to come to terms with their lender for funding necessary to maintain business operations. The company is currently exploring all of its alternatives and will provide further guidance when decisions are made, which is expected to be later this week.”
Both Eclipse and Epic, two other VLJ manufacuturers, were able to secure additional financing recently by tapping international investors in Russia and India, respecitively. Epic’s investor, Dr. Vijay Mallya also owns Indian regional airline Kingfisher Airlines, which has made huge investments not only in ATR 72-500s but in ATR training facilities in the subcontinent. Mallya wants to manufacture that very light jet in India and market the Asian-produced aircraft to the Middle East and Asia.
Live chat by BoldChat