Sun, May 12, 2024
Amphibious and Overambitious Seaplane LSA Manufacturer Up for Grabs
Icon Aircraft has been given final approval for $9 million in Chapter 11 financing, with an asset auction approved to take place in June 2024.
The move came courtesy of US Bankruptcy Judge Craig Goldblatt, who granted final approval to the company's debtor-in-possession financing, setting the schedule for the company's sale. Judge Goldblatt did not approve the stalking horse bidder, though, despite its approval by Icon and shareholders. There's plenty of drama involved there, with some finding the selection of the bidder a bit suspicious when looking at the various connections and relationships the firm holds. The stalking horse matter will be gone over during a hearing on May 21st, in any case. The company was given permission to dig into $4 million of its requested $9 million debtor-in-possession loan from FeiRen International Company.
The move wasn't exactly met with excitement from some Icon shareholders - co-Founder and CEO Kirk Hawkins have filed suit in Delaware espousing their belief that the sale order is just part of a Chinese shareholder's plan to dissect the company and take the IP over to their homeland. In the end, there's still plenty up in the air at the moment. The company's sale will be lengthened by a bit, with the auction starting on June 13, 2024 with a sale hearing on the 18th. Should the winning bidder be an 'insider' or something similarly extenuating, then the hearing will be bumped to June 27th to sort everything out.
It's not exactly fun news for Icon A5 pilots and would-be buyers, but the current roster of company men seem to believe they'll continue their operations as long as possible. Recently, CEO Jerry Meyer had spoken to buyers with the air of someone who thinks this will all just be a blip on the company's longer timeline.
Hmmm...
"We are grateful for the continued support of our owners, partners, and the aviation community as we navigate this challenging period," added Meyer. "With the assistance of our stalking horse bidder and the expertise of our professional team of attorneys and advisors, we are confident in our ability to deliver a stronger and more resilient company to a successful purchaser following the court-supervised sale process."
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