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Adam Aircraft $ 30.5 Million Survival Update
Adam Aircraft $ 30.5 Million Survival Update

In a follow-up interview with Shelly Simi, spokesperson for Adam Aircraft Inc., she told Industry Headline News, "We´re alive. AAI has gotten responses from investors; we´re looking into options to secure long-term financing." Simi declined to confirm if Adam had raised $ 25.5 million, outside of the $ 5.5 million secured in December, meeting the company´s self-imposed deadline to secure $ 30.5 million by Jan. 31. Englewood, Colo.-based Adam set out to secure $ 30.5 million, giving its investors a special incentive, until Citibank is able to secure at least $ 100 million.

Simi said earlier media reports had suggested that AAI would be forced to liquidate, if it didn´t raise $ 30.5 million by Thursday. "That´s not accurate; there may be liquidation of assets from shareholders, not the company Adam Aircraft," she said. In other words, current shareholders would own a smaller piece of the pie. One thing´s for sure: our economy is in the toilet; any company seeking capital, especially in the U.S., is finding it difficult.

She said Adam´s doors are open and they´re operating.

"A700 (the company´s composite twin-engine, seven-place very light jet) test aircraft, serial number 5, is being built now," she said. "We expect to have it flying in late spring." She said that Adam remains committed to continue with its A700 certification program, with full type certification obtained this year. Further, she said Adam´s goal is to certify its VLJ, out of the gate, as a useful aircraft that´s certified to fly in all missions that it was designed for.

In mid-January, Adam laid off 300 workers, and when asked if more cuts were expected, Simi answered, "I can´t speculate on that; right now we´re focusing on long-term financing. By the first part of next week we´ll be able to address where we are, what our plans are, etc."

Adam´s Make Production Fly Program Is Alive And Well

Simi said Adam´s Make Production Fly program, a new plan to streamline production of the company´s certified A500 (paving the way for its A700), a single-engine, all-composite plane, has significantly shown progress.

"A500 serial no. 15 is in final assembly, which is scheduled for delivery this spring," she said. "Number 16 is in the production process; 17 is entering production. On Jan. 15, New Mexico´s state police took delivery of its A500. Adam had originally leased it back, using it for demos, air conditioning certification, flight data, etc. Now, the aircraft is being used by its owners--they´re thrilled to fly the A500."


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