30 May 2008

Aviation Technology Group Bankrupt

Aviation Technology Group, a start up general aviation manufacturer, has filed for bankruptcy under Chapter 7. Fellow Colorado (and Centennial Airport) general aviation manufacturer Adam Aircraft filed earlier this year, but was bought out of bankruptcy by a Russian private equity firm which is reviving the business.

ATG has been looking for additional financing while operating on a skeleton crew for months, with no such success.

[It's] claiming $10 to $50 million in assets and $50 to $100 million in debts. ATG, which laid off the majority of its workers in December, said it has 100 to 199 creditors.

Honestly, I'm a little surprised at the way things turned out. ATG has more of a high end niche product, but would seem like a valuable addition to a defense contractor. I'd also expected that the high end of the general aviation market would be more recession proof than the low end. But, apparently, the ordinary general aviation market represented by Adam Aircraft has more life in it than I had believed, while the hig end is dead.

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