Court Approves Russian-Owned Company's Acquisition Of Assets

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. Morris.

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 markets.

FMI: www.adamaircraft.com