Last night Adam Aircraft announced it is suspending operations at its facilities in Englewood and Pueblo, Colo., because of funding issues at the start-up aircraft manufacturer. “This measure was required due to the inability of the company to come to terms with its 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,” Adam Aircraft said in a brief press release. All 500 employees, including the executive team, have been laid off. Last Thursday, a company spokeswoman had told AIN that Adam Aircraft was “moving forward” with investors on short-term funding options for the $ 30.5 million it said it needed by January 31, but apparently those plans fell through. The company previously said it would need a second, longer-term financing round of $ 100 million to $ 150 million by May 31. Citibank was leading this larger funding effort, but the spokeswoman said “every option is now open.” So far, the company has delivered seven A500 piston twins and has three conforming A700 very light jets in flight test. FAA certification for the A700 had been planned for the fourth quarter.
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