ROL NEWS--AeroTech Files for Chapter 11

AeroTech Files for Chapter 11 December 16, 2003 Web posted at: 3:28 PM EST Cedar City, UT (ROL Newswire) -- AeroTech, Inc. and Industrial Solid Propulsion, Inc. File for Chapter 11 Bankruptcy Due to the incredibly high cost of litigation against Clark County and the Clark County Fire Department, AeroTech, Inc. and its parent company, Industrial Solid Propulsion (ISP), Inc. have filed a petition for relief under Chapter 11 of the Bankruptcy Code.

The companies believe that the current operations can be profitable and that there is value in the existing business which will provide, at least, some payment to their creditors. In addition, the continued operation of the business will allow the companies to continue to provide for its customers until the business is reorganized or sold. Under Chapter 11, all current bills will be paid in the ordinary course of business. Pre-petition bills will be paid pursuant to a Plan of Reorganization.

All pending litigation will be stayed by the bankruptcy. The companies will evaluate at a later point, with creditor input, which litigation they will pursue and which litigation will be resolved without further legal proceedings.

Source: AeroTech Inc.

Reply to
ROL News
Loading thread data ...

Ouch! What a bummer! (And just as they were starting to get things going at the new plant, too...)

-dave w

Reply to
David Weinshenker

From their press release I gather that they are still in business. They are just "reorganizing" and getting some protection from law suits against the old companies.

The motors will keep coming for the time being.

- Jeff Taylor

David We>

Reply to
Jeff Taylor

So Ray, still think the market for motors is plentiful? No need to re-evaluate anything though, eh?

To everyone: what can we do?

~ Duane Phillips.

Reply to
Duane Phillips

By the way, I see nothing posted on the AeroTech website confirming this...

~ Duane Phillips.

Reply to
Duane Phillips

Sometimes 11 turns into 7 and sometimes 11 turns into a fresh start. Wanna bet?

Gary has a lot to overcome.

And a bunch of pissy consumers he is relying on to save him and orgs bent on demanding unneeded permits thus further restricting the pool of customers 80-90% willing and able to save his ass.

Save Gary Rosenfield! Eliminate ALL demands for ANY ATF permits by ANY trade association!

Jerry told you so.

Jerry

Reply to
Jerry Irvine

Jerry told you what to do. To save AeroTech and to add 5+ new motor vendors. The absolute minimum required regulation and rules and the few rules that do exist are only enforced by the respective government agencies and NOT the club.

Clubs have a safety code and a list of tested motors. That is literally ALL they need. Not one thing more.

Jerry

Reply to
Jerry Irvine

Anybody out there win the lottery & have an extra million or so to spare ?

JD

Reply to
JDcluster

Duane,

Lessee, the Aerotech hobby motor peghooks are empty at Texas RC and Hobbytown USA (in Plano, TX). No more SU motors at Hobby Lobby, either.

And I don't think Sharon at Trailing Edge has any (still legal) EZ Access reloads - least not last time I asked. Seems Aerotech wouldn't/couldn't ship to her.

I think Aerotech has been a well run company. While I can point out many things I wish they had done better, overall, they strike me as having accomplished a great deal, navigating the rocketry biz with much success. I am not privy to the details of all their current problems. I think Clark County owes them big, but I cannot tell whether it's prudent to pursue it.

The bottom line is I can't help if I can't buy their stuff, and the motors have been pretty scarce around here for a long time. Furthermore, they took their webstore offline, and have only recently restored it, but with only two products.

Methinks there's great revenue for them to collect if they'll get product into the users' grasps. I'm not saying things are their fault, but it sure isn't for my lack of trying.

Doug

Reply to
Doug Sams

I have known it was imminent for over a month.

It's true.

Please be so kind as to send Gary some fond Christmas wishes and it wouldn't hurt to stick a few bucks in the card so he can buy Christmas presents.

Jerry

Reply to
Jerry Irvine

I will agree with this. From the way I see it, mid power is hurting for choice of engines. We could definately use at least a couple more manufacturers in this area, certified or not(doesn't really matter to me).

And just to satisfy my smart-#%$ side(or my dumb-$%# side you decide). A club could really use members and a place to launch.

Reply to
zak orion

I agree whole-heartedly... have done the same... checking and rechecking local hobby shops I frequent. And I *live* in Utah... still no local motors.

~ Duane Phillips.

Reply to
Duane Phillips

I would not anticipate the filing having any effect on production, unless they are unable to purchase raw materials on credit

the plan appears to be to continue operating with the intent of paying off some creditors to some degree

I think the ones who are being affected most here are the AT lawyers that now can't collect their fees

- iz

Duane Phillips wrote:

Reply to
Ismaeel Abdur-Rasheed

it appears that their website "press" and "news" pages haven't been updated in over a year

- iz

Duane Phillips wrote:

Reply to
Ismaeel Abdur-Rasheed

done! I'm sending cash, addressed to him personally c/o AeroTech, with an anonymous note.

you're a good man, Jerry

- iz

Jerry Irv> >

Reply to
Ismaeel Abdur-Rasheed

I hope so. If all else fails, our RMS cases would make a nice set of expensive windchimes.

-- Joe Michel NAR 82797 L1

Reply to
J.A. Michel

Why not EX casings...? :-)

Reply to
Len Lekx

Hard to imagine why you would say that.

BEFORE the accident sales were dropping precipitously as a direct result of the AT/NAR/TRA policy of ATF permits for exempt products "all of a sudden" with NO CHANGE IN THE LAW.

Being channeled into a monopoly by NAR/TRA is not navigation. It is riding the a water slide for free! Gotta love it!

No comment on the rest. I wish all industy participants well on products they did not steal, convert or get by improper means.

Jerry

Reply to
Jerry Irvine

Businesses of all sorts use Ch. 11 to increase the likelihood they will be able remain viable in the long run. It is actually a good sign for Aerotech that they are willing to face the facts without letting themselves bleed to death.

First, keep buying their products as you normally would. This is capitalism, not charity. ;)

Secondly, spread the word that the hobby is not dead. It is going strong and people are flying whatever they can afford, legally with or without a LEUP. Keep the FUD to a minimum. That will help every rocketry-related business, and will get more people interested in all aspects of this very cool hobby.

-John DeMar

formatting link

Reply to
John DeMar

On Jan. 23, 2003, I predicted the AT bankruptcy.

formatting link
If the link doesn't work due to line wrap,

"Large numbers of HPR flyers who did not need an LEUP will leave the hobby. The regulatory hassle just won't be worth it. Many HPR related businesses will fail. This couldn't happen at a worse time for Aerotech. When they finally do get back into production, there will be an increasingly dwindling customer base. They will file bankruptcy within 18 months. When this happens, mid-power is dead. AT has a completely monopoly in F & G size motors. If and when the lawsuit succeeds, there will be no HPR left for it to save. It will be a hollow victory."

Sooner than I expected. It was a fun hobby. Auf Wiedersehen.

Reply to
The Central Scrutinizer

PolyTech Forum website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.