ICON Aircraft has selected a “stalking horse bidder” as part of its Chapter 11 bankruptcy petition.
According to Investopedia, a stalking horse bid is an initial bid on the assets of a bankrupt company. The bankrupt company chooses one bidder from a pool of bidders to make the first bid on the firm’s remaining assets.
What this does is set the low-end bar on the bidding process, which means other bidders can’t go below that initial bid.
ICON’s proposed stalking horse bidder, SG Investment America, has been designated to set the floor price for the sale of ICON’s assets.
“The decision to designate a stalking horse bidder underscores our commitment to ensuring the long-term viability of our business,” said Jerry Meyer, CEO of ICON Aircraft. “We believe that this proactive approach will help employees, partners, and customers have confidence in our ongoing operations, enabling the company to achieve the best possible outcome.”
ICON’s bankruptcy process is expected to continue through late May 2024. Other bidders will have the opportunity to submit “higher or better bids,” according to company officials.
Despite facing financial headwinds, the company continues to build, sell, service, and fly aircraft during the bankruptcy process, company officials said.
It also is working with the FAA to achieve Production Certification of its type certified ICON A5, allowing it to expand sales to outside the U.S. that do not recognize the Light Sport Aircraft (LSA) category, company officials added.
For more information: ICONAircraft.com
I agree. I’m surprised that they sold any at this price. Who in the world would even want the Company? All I can think of is someone with a lot of money who wants it for a hobby and doesn’t care how much they loose playing with it.
With a base starting price of $409,000. they have basically priced themselves out of the market for a light sport aircraft. The average person cannot afford that for a light sport. Most of the elite class buy high end jets and more expensive aircraft. They should’ve seen this coming. Most people who love to fly can find light sport aircraft to fly for a much more affordable price. Even a well equipped Super Cub is far more affordable than the price of an ICON aircraft. It is, however, a beautiful aircraft and I would love to have one. But at that price, I think I’ll pass….
Light sport aircraft dipoles not mean lite pricing. I could not purchase one.