Court Approves Russian-Owned Company's Acquisition Of
Adam Aircraft will fly again... thanks to more than little
outside help. Last week, the United States Bankruptcy Court for the
District of Colorado approved the sale of the assets of Adam
Aircraft Industries, Inc. to AAI Acquisition, Inc., a Delaware
corporation which is part of the Russian-controlled Industrial
Investors group of companies.
As ANN reported, Adam
Aircraft filed for Chapter 7 bankruptcy on February 15, 2008. Legal
counsel for the purchaser was Industrial Investors' advisor,
Orrick, Herrington & Sutcliffe LLP, whose Washington, DC-based
team included corporate partner Olga Sirodoeva and associate Paul
Zarnowiecki, and bankruptcy partner Richard Wyron; Holland &
Hart LLP was its local Colorado counsel.
Legal counsel for Jeffrey A. Weinman, the trustee in bankruptcy,
was Lindquist & Vennum, whose Denver-based team included
bankruptcy partner J. Smiley and corporate partner Harold G.
The purchase price was $10 million plus amounts due under the
contracts assumed by the purchaser.
While Adam Aircraft currently has two aircraft product offerings
-- the A500 inline-twin and A700 very light jet -- there's
little mention of the former in company statements. "We plan to
revive Adam Aircraft's operations, including continuing the process
of certification for the A700 jet," said Dmitry Shokhin, Vice
President of AAI Acquisition, who added the company plans to
'broaden' its product line, as well.
Industrial Investors is a large Russian private equity asset
management company, specializing in transportation projects. The
company manages assets of over $3 billion US. The company has a
Colorado connection, as well... as former Governor Bill Owens is on
the board of directors of FESCO, one of the companies of the
Industrial Investors group.
Industrial Investors own Russian air-taxi operator "Dexter" and
the first business jet airline "Velvet Club." Industrial
Investors expect the new acquisition to hold its own ground as the
manufacturer of very light jets for air taxi and general aviation