ATG files bankruptcy after options run out
By Chris Walsh, Rocky Mountain News (Contact)
Published May 28, 2008 at 5 p.m.
Aviation Technology Group, the once-promising aircraft developer that closed its doors late last year, has filed for Chapter 7 bankruptcy after failing to sell the business or secure more funding.
The Arapahoe County-based company now hopes a U.S. trustee will be able to help peddle its assets - either as a whole or separately - to interested buyers.
"Everybody believes that there's value in these assets, so the decision was made to put the company into Chapter 7 and see if they can be sold," said Caroline Fuller, an attorney with Fairfield and Woods who is representing ATG.
The company had been developing an advanced, lightweight sports jet for wealthy individuals and private pilots. But it ran out of money and was forced to close its doors and lay off all but a handful of workers.
A lender had agreed to finance efforts to raise more money or sell the company, but it recently decided to pull the plug, Fuller said. At one time ATG employed 100-plus workers and was going to hire hundreds more to manufacture the planes at Front Range Airport.
ATG lists its estimated assets at between $10 million and $50 million and estimated liabilities of between $50 million and $100 million. It also has up to 199 estimated creditors in the case, according to documents filed in U.S. Bankruptcy Court for the District of Colorado.
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