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.
