On June 18, a Delaware bankruptcy judge approved the sale of Icon Aircraft to SG Investment America for $15.79 million, according to recent legal filings.
The manufacturer, known for its Icon A5 amphibious light sport aircraft, filed for Chapter 11 bankruptcy earlier this year, declaring $170 million in debt. In May, Icon selected SG Investment America as the ‘stalking horse’ bidder tasked with setting the initial sale price for other potential buyers during the auction process.
AOPA reported on the sale noting that the hearing, which lasted just 30 minutes, drew last-minute offers from SG Investment America and General Atomics CEO Linden Blue, who offered nearly a quarter million dollars less. Ultimately, SG Investment America was chosen due to the “certainty” it offered.
Per court documents, Blue will maintain his position as a “backup” bidder until September, with the option to finalize the sale if the agreement with SG Investment America does not progress quickly. The sale may enable the company to continue aircraft production, although the buyer’s intentions were not clarified in court documents or the hearing on June 18.
Revised terms of the transaction include provisions for the termination of all Icon staff, with possible job offers under the discretion of the new ownership.
Interesting, though unsurprising.
How do you make a small fortune in aviation? Icon turned $138.75m into $15.79m in 15 years.
“How do you make a small fortune in aviation?” Now that’s an ‘Iconic’ saying 😀
>>Icon turned $138.75m into $15.79m
Not even. It’s way worse than that. They turned $139M into a debt of $170M, and somebody came up with $16M for the honor of taking on however much of that $170M debt survives the bankruptcy process.
I expect somewhat similar results with Boom in the future. The new hangar will make a fine Amazon distribution center. The most recent 41 second video, full of loud music and animated aircraft being assembled, are a tribute to the company hired to do the promotion work.
make a $100,000 dollar Cessna 172 and the world will beat a path to your door.
nah, no flash and pizzazz.
You dropped a zero in the price.
Even better would be a Piper M700 Fury for $4 million. However there is still hope with the Seamax Amphib for $299k.
Will the current aircraft have the right of refusal regarding the buyer? Hmmmm.
Being purchased by a French company? I would have bet on China.
SG Investment America, the new owner of Icon is owned by a 160-year-old German manufacturer of sewing machines, Dürkopp Adler GmbH, which is, in turn, owned by ShangGong Group of Shanghai, China, which also makes sewing machines.
Meant to say, “current aircraft owners”…… duh
How much should a JetSki with wings (that can kill you instantly if you screw up) cost?
Too much.
Court documents show that one of Icon’s largest creditors has been repaid: East West Bank of El Monte, California, which loaned the company more than $60 million at various times prior to the bankruptcy filing, has been repaid those secured claims and its counsel withdrew from the proceedings. Of the remaining $105 million in various unsecured loans Icon owed, the vast majority—$93 million, according to court documents—was loaned to Icon by the same company that had acquired more than half of the company’s equity in the years leading up to the bankruptcy. The most recently revised liquidation analysis in the case indicates unsecured creditors will be repaid less than a penny on the dollar once the $15.79 million sale is complete.
According to published reports, SG Investment America, the new owner of Icon is owned by a 160-year-old German manufacturer of sewing machines, Dürkopp Adler GmbH, which is, in turn, owned by ShangGong Group of Shanghai, China, which also makes sewing machines.
2024: CCP controlled company buys Icon, a maker of amphibious aircraft despised by grumpy old American pilots.
2027: Taiwanese Navy destroyed by swarms of amphibious flying drones.
Also 2027: Whitehouse spokesperson denies any connection from selling of general aviation industry to the CCP’s drone manufacturers.