ROL NEWS--AeroTech Files for Chapter 11

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


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On Jan. 23, 2003, I predicted the AT bankruptcy.
http://groups.google.com/groups?q=%22I+predict%22+group:rec.models.rockets&hl=en&lr=&ie=UTF-8&group=rec.models.rockets&selm 30E039.7030404%40nospam.com&rnum=3
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.
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The Central Scrutinizer wrote:

Didn't take a rocket scientist to predict that one. ;)
But it has very little to do with the reasons you stated. Current demand exceeds supply. Cash flow has slowed down their production due to legal expenses having nothing to do with customer perceptions of the regulatory issues.
It still *IS* a fun hobby!
-John DeMar http://delta.syr.edu/jsdemar
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Hmmm. Only 11 months later.
Not bad considering I heard a supplier I trust say THEY would have filed BK shortly after the fire. So now he is BK and stupid and also a lover of begging customers to get ATF permits? Hmmm. How could you have predicted it?
:)
Predicting the obvious is a terminal offence on rmr. Damn good thing you are anonymous.
Jerry

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Jerry Irvine, Box 1242, Claremont, California 91711 USA
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TCS wrote: << On Jan. 23, 2003, I predicted the AT bankruptcy. >> <snip> << When this happens, mid-power is dead. >>
They've filed for Chapter 11 and are still in production, so it's a little early to be claiming that "mid-power is dead".
<< AT has a completely monopoly in F & G size motors. >>
Yep, mainly because the smaller motors aren't very profitable, so the other certified vendors don't want to bother with them.
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other
Ray, you are all over the place. One minute you say there is no problem, the next minute you agree, but make excuses for the problem.
~ Duane Phillips.
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He needs meds and I am not exaggerating.
Or cult training!
Jerry
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Jerry Irvine, Box 1242, Claremont, California 91711 USA
Opinion, the whole thing. <mail to: snipped-for-privacy@gte.net>
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Duane wrote: << Ray, you are all over the place. One minute you say there is no problem, the next minute you agree, but make excuses for the problem. >>
I'm agreeing that AT is the only manufacturer that is heavily into F and G motors. I do NOT agree with your contention that it's TRA's fault there are more manufacturers willing to make motors that size. Go ask CTI, AMW and Ellis why they aren't producing more mid-power motors.
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snipped-for-privacy@aol.com (RayDunakin) wrote:

Huh? What planet are you from?
Jerry
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Jerry Irvine, Box 1242, Claremont, California 91711 USA
Opinion, the whole thing. <mail to: snipped-for-privacy@gte.net>
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As a dealer I have been advised by AT that they are continuing to accept and ship orders. No worries.
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I've heard allot of the orders have to be "prepaid". While vendors are waiting months if not a year or more to receive their shipment.
Why don't they strike up a deal to have Wally Mart carry their motors? Opps, scratch that, good old WallyMart wants suppliers to pay them to carry their products.
Oh, well
JD

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The are not extending terms at least to new dealers. I don't know what the case is with older established dealers. I pay for only what they ship. They bill me for what is shipped and the backorders are not billed. They have been very cooperative and are doing what they can to get motors out. I received my shippment of 54mm reloads today. The K1275R should be a nice flight. I believe they will continue to increase production and motors will make to the user.

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Shockie wrote: << A company in Chapter 11 continues to provide employees with salaries and medical benefits. It is also able to continue to do business with suppliers and customers in a routine manner. >>
That's good to know, not only for us customers but also for the employees.
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Steve wrote: << Duane, If you live in CA, does it matter to you if you're buying a product that is legal to sell, purchase and use in that state? >>
Actually, he does not live in CA. Which means that he has even more motors legally available to him than we do. But for some reason his local vendors are unable or unwilling to carry CTI, AMW or Ellis motors.
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