Adam Aircraft sold to Russian company

A copyrighted story in The Denver Post says a bankruptcy court has approved the sale of Adam Aircraft to a company associated with a Russian conglomerate.

A bankruptcy court on Wednesday approved the sale of Adam Aircraft to a company associated with a Russian conglomerate, which plans to restart the business at Centennial Airport as early as this week after the deal closes, according to an April 10 story in The Denver Post.

Buyer AAI Acquisition Inc. was started by Russian private equity firm Industrial Investors to buy Adam Aircraft. AAI bought Adam Aircraft for $10 million plus obligations due under contracts it assumed.

Adam Aircraft brought its A500 propeller plane to market in 2005 and was working toward federal certification when it shut down in February and filed for Chapter 7 bankruptcy. It had operations in Pueblo, Colo., and Ogden, Utah.

There are no immediate plans to continue Adam Aircraft’s operations in Pueblo or Ogden, said Jan D’Angelo, head of sales, marketing and customer support for AAI. “We need to concentrate on the Centennial location,” said Dmitry Shokhin, vice president of AAI.

AAI retained about 50 former Adam Aircraft employees as it prepared to bid for the company. D’Angelo said the company will probably build up to about 300 employees in its first year of operations.

AAI plans to continue working toward certification of the A700 very light jet under development.

Federal Aviation Administration spokesman Allen Kenitzer said that “because they changed hands, they have to start anew,” though the process would be faster than starting entirely from scratch. “More emphasis will be put on the A700, but we are working very hard to recertify the A500,” Shokhin said.

The A500 design certificate is still valid, but the new company would need a new production certificate.

Information: Click here for the original story in The Denver Post.