Boss Godfrey's Adam Aircraft puts out the tin cup to avoid liquidation
Cash flow crippled Adam Aircraft gives the bad news to its shareholders: "We're two deals away from liquidation," and Adam Aircraft investors might not get their investments back.
We hope Boss Godfrey and his cadre of empty suits can reassure the lumpencitizens about this.
For the time being, we of Emerald City and the State of Utah, who have pledged millions in monies to Adam Aircraft, for the construction of Adam Aircraft's possibly to be abandoned custom-designed manufacturing facility are, well...
Keeping our fingers crossed, shall we say...
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13 comments:
How were the "millions" channeled to Adam? I know of the 2.5 million advance to Kemp on a hangar, was there more, and was it directly to Adam, or Kemp?
I think the big state subsidies are in the form of tax forgiveness in against future earnings in Utah? So Adam has not got that money yet.
What will happen if neither one of them can make the long term bond payments on the TIF bonds issued out there? Will the tax payers have to pick up those bonds?
What the hell? We only elected Godfrey for a mere four more years. How much more damage can he do anyway?
Of course, it is well that Godfrey is picking companies for us to invest our tax money in.
He has made billions himself picking emerging companies and investing his own money.
NOT!
Let's face it. If Adam had a future, they could get the money. The heavy hitters have already invested, and Adam has gone through their money like Godfrey going through a tax increment deal.
Say goodbye to Adam. City Council, start planning for Godfrey's proposal for how to "redevelop" the "Old Adam Aircraft Property" with taxpayer money.
So predictable . . .
Hansen's bill of ticket quota's passed the house today.
Here's another inappropriate (and bizarre) posting from the chairman of the Utah Democratic party. If he can't get his blatherings into a paper, why should Utah's blogs pick up the slack? I don't think he gives a good impression of Utah Democrats.
Thanks for the comment, Elder McConkie. I'm glad to hear that I'm not the only one who found that referenced post to have been just a mite "cheeky."
The post has been accordingly removed.
In Re: Adam Air
Sadly, I detect the faint whiff of crowing in some of the comments about Adam Air's financial problems.
As for me, I hope the company arranges the financing. I hope it gets past the current crisis and resumes production, and prospers. 300 of our neighbors losing good jobs is too high a price to pay to be able to say "Ah ha! Gotcha!" to Godfrey. So I hope they make it, and the 300 laid off at the Ogden facility get their jobs back, whether in the end that ends up reflecting well on the Administration that recommended the subsidies to accommodate Adam or not. Seems to me, Ogden has nothing whatever to gain by Adam Air going under, and a good deal to lose... especially those recently laid off.
I'm witcha on that one Curmudgeon.
I too am keeping my fingers crossed that Adam finds the money and stays in business.
Curm and Oz, it's not whrther Adams survives or not, we all feel for the folks employed, which 300 was a projection, I don't know what the actual was.
The real point is where was the due dillegence? One can't be too sure that the original flap over Earnst isn't somewhat related. Before approving all these millions to potential entities, their financial status needs to be thoroughly vetted. It's not rude and uncalled for. In the future the RDA board needs to be 100% appraise of the financial health of these fplks with their hands out.
The funny thing in this case is Kemp was the recipient, none of this money was going to benefit Adams anyway. Lying little matty got away with lining one of his buddy's pockets. Who's to say he didn't know the money situation when he went into it, and Kemp as well?
I'm with you, Ozboy and Curm. It would be devestatating for Ogden if Adam Aircraft were to fold.
Adam Aircraft's fortunes are intricately tied up with the fortunes of the lumpencitizens of Emerald City.
A bright future for Adam Aircraft is likewise a bright future for Ogden, and vice versa.
I also wouldn't be the first to declare Adam aircraft DOA, BTW.
They reportedly have $1 billion in airplane orders "on the books," and could possibly parlay their existing investers to pony up again... in order to "protect" their earlier investments, on the strength of that alone.
Moreover, they have the best small aircraft designs in the industry, as well as the most competent managers and engineers in the airplane business.
Oz, Curm and Rudi, Mr. Schwebke has informed us in his latest revelation, that it is approx. 50 employees, not 300, that number could be an administrative invention to secure money for Kemp.
Rudi
"they have the best small aircraft designs in the industry, as well as the most competent managers and engineers in the airplane business."
I think that is a a huge and speculative statement for you to make! There are no doubt thousands of professionals in the airplane game that would hotly contest that.
They do have a new and innovative design done by Burt Rutan, but there is no evidence that it is the best.
There are several competing designs in this class of airplanes. I am sure that the one in New Mexico that is financed by the Microsoft Billionaire Paul Allen would have many people declaring them the best all around too. And of course with Allen writing the checks they aren't likely to run into the same problems Adam has.
And if their managers are so damn competent, then why are they in the fix they are now?
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