Adam Aircraft Files For Chapter 7 Liquidation

I knew these guys were having problems, but I didn't know it was this
bad:

ANN REALTIME REPORTING 02.19.08 1430 EST: Aero-News has learned Adam
Aircraft has filed for Chapter 7 liquidation, effectively dashing
hopes the company would manage an 11th-hour funding miracle and
continue operations.

"In the absence of additional funding for the company to continue
operations, it is ... in the best interest of the company, its
creditors, shareholders and other interested parties" to file Chapter
7, the company said in a court filing, according to the Denver
Business Journal.

The Denver Post reports the petition was filed last Friday in US
Bankruptcy Court in Colorado, and includes "hundreds" of creditors --
including company founder George F. "Rick" Adam, Jeppesen Sanderson,
several city and state offices and utilities throughout Colorado and
Utah, and Denver's "Wings Over The Rockies" Air and Space Museum.

Also listed as creditors are those who had taken delivery of Adam's
A500 twin piston aircraft -- including Mike Leahy, who took delivery
of the first A500, and the New Mexico State Patrol, which took
delivery of the last A500 shortly before the company announced it was
in serious financial trouble.

As ANN reported last week, Adam shut down ALL operations February 11,
and laid off its remaining workers but held open the possibility of a
last-minute bailout, with an Adam spokesperson calling rumors of an
impending bankruptcy filing "premature." Sadly, that hope proved
overly-optimistic... and the last Adam official, CEO John D. Wolf,
tendered his resignation effective February 15.

Hints of significant problems at Adam came to light in January, with
the company's announcement of the layoffs of close to 300 workers, and
the suspension of the plane maker's operations in Utah. At the time,
the company cited the need to overcome past issues with the
certification of its A700 very light jet, and obtain capital to see
that program through to TC, as reasons for the decision.

One week later, details of a January 15 letter to stockholders from
Wolf came to light, outlining the company's financial issues. The
letter stated the company's future hinged on completion of two
successful financing transactions, the first of which called for Adam
to raise $30.5 million by the end of January. The company reportedly
secured $5.5 million of that in late December... but follow-up funding
never materialized.

The company delivered approximately seven A500s to customers.