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ATG files for Chapter 7 bankruptcy

By Chris Walsh, Rocky Mountain News (Contact)

Published May 28, 2008 at 5:03 p.m.
Updated May 28, 2008 at 5:03 p.m.

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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. Bankruptcy Court 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 terminate 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 more than 100 workers and was going to hire hundreds more to make its planes at Front Range Airport.

ATG lists its estimated assets at between $10 million and $50 million and estimated liabilities at 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.

Comments

  • May 28, 2008

    8:24 p.m.

    Suggest removal

    windbourne writes:

    Keep in mind that it was not just wealthy ppl, but was thought to be useful as a trainer. While it is subsonic, it is useful for teaching at say ROTC, air force, navy, etc. Why? Because this designed to actually burn a whole lot less fuel.