Adam Aircraft Industries suspended operations at its facilities in Colorado on Feb. 11.
According to a statement from the company, “this measure was required due to the inability of the company to come to terms with their lender for funding necessary to maintain business operations.”
The statement added that the company is currently exploring all of its alternatives and will provide further updates when decisions are made. Calls to Adam Aircraft were not returned by press time.
The move follows the Jan. 17 layoff of 300 employees. The cuts, described as “a strategic adjustment to streamline processes to achieve goals,” targeted employees in the production departments.
A few days later, in a letter to shareholders, president Duncan Koerbel revealed that Adam Aircraft needed to raise $25 million by the end of the month. If that did not happen, the letter said, the company could be forced to liquidate some assets to meet financial obligations.
It is unclear if the closure means the end for Adam Aircraft, which produced the centerline-thrust piston-powered A-500 and was in the midst of certification flight tests for it jet, the A700, which was expected to earn its Type Certificate sometime this year.