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Adam Aircraft: From Bankruptcy To Auction Block

Adam Aircraft: From Bankruptcy To Auction Block

Interested buyers must deposit $ 250,000 and a minimum bid of $ 10 million to win the assets of Chapter 7 bankruptcy victim Adam Aircraft. The company´s belongings will be on the auction block April 4, but bids are due one day earlier. Adam filed Chapter 7, the day after Valentine´s Day, laying off 800 employees and granting former company president Duncan Koerbel $ 300,000 in severance pay. According to the bankruptcy filing, the company has less than $ 1300 cash on hand and $ 173,000 in financial accounts. Founder Rick Adam first brought the Adam A500 and A700 designs to the public but left his position at the company in 2007 and is now one of many who have filed suits against Adam Aircraft. Rick Adam´s suit is based on the company´s "failure to materially complete the terms of a contract for a manufacturing facility in Pueblo."

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