ICON Aircraft, manufacturer of the ICON A5 amphibious sport plane, has filed for Chapter 11 bankruptcy.
Company officials say they are looking to sell the business under Section 363 of the Bankruptcy Code, “while continuing to support its customers and operations during the Chapter 11 process.”
“The purpose of the Chapter 11 filing is to resolve the company’s financial challenges and position the A5 for success for years to come,” said CEO Jerry Meyer. “We understand that this situation creates a hardship for everyone involved. However, without taking these steps, there is not a viable path forward for the business to do what we do best – build incredible airplanes and support our aircraft owners.”
The company expects to continue operations during the Chapter 11 process and seeks to complete an expedited sale process with Bankruptcy Court approval, company officials added.
ICON Aircraft has arranged for debtor in possession financing to fund operations during the bankruptcy proceedings, including “honoring commitments to customers and vendors and fulfilling obligations to all employees,” officials noted.
For more information about the company’s Chapter 11 case, including claims information, go to Cases.Stretto.com/IconAircraft or call 866-993-1870.
This aircraft is an expensive toy with a purchase agreement that is unbelieveable for anyone associated with aviation. It is very slow, has no range, can’t operate in anything but smooth water and insurance costs are off the charts. Glad to see the Chinese are associated with this mess.
They make a beautiful airplane and I would more than love to have one, but they have priced themselves completely out of the market for what they are selling. For the most part, any pilot who can afford $270K to $390K for one can easily find a very nice float plane for way less than that.
The only aspect of this news that is surprising is that the company managed to stay alive as long as it did. It was always associated with glitzy marketing, hyped up by a complicit media, lots of bending of the LSA rules by the FAA, and still a very tiny market for seaplanes in addition to the high cost of insurance for them. One wonders if the founders ever bothered to do a market study at all in advance. Another Terra-Fugia smoking hole where millions of investor dollars were turned into ashes.