Court Approves Adam Sale To Russian-Backed Firm

A Colorado bankruptcy court has approved the sale of the assets (and some liabilities) of Adam Aircraft Industries to AAI Acquisition Inc. for $10 million. The company is a subsidiary of Russia-based Industrial Investors, which, according to a company release, owns Russian air taxi operator Dexter and what it calls a business jet airline called Velvet Club. Although Adam has both a piston and jet design, Industrial Investors seems to be leaning toward getting the A700 very light jet off the ground. "We plan to revive Adam Aircraft's operations, including continuing the process of certification for the A700 jet," said AAI VP Dmitry Shokhin. While the company's own aircraft operations would seem a natural extension of the business plan for the Adam acquisition, AAI says it expects the A700 and A500 to stand on their own.

"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," the release said. After AAI cut its original deal with the bankruptcy trustee, at least one creditor suggested the company was thinly capitalized. Industrial Investors claims to be a private equity management company managing $3 billion in assets and says former Colorado Governor Bill Owens is a director of one of its companies.