ROL NEWS--Bids Solicited for Sale of AeroTech Inc.

Bids Solicited for Sale of AeroTech Inc. January 27, 2004 Web posted at: 1:14 PM EST

(ROL Newswire) -- On February 25 Schwartzer & McPherson Law Firm sent the information below to RocketryOnline for posting on the internet regarding the sale of AeroTech and ISP:

************** By this Notice, the Debtors solicit bids for the sale of all or part of the Business. All persons requesting additional information concerning the Business or the assets to be sold may contact the Debtors¹ counsel at the telephone number or facsimile number listed on the top of first page of this Notice. The current minimum bid for the entire business is $30,000. The Debtor has a bid from RCS Rocket Motor Components, Inc. (³RCS²), a Utah corporation owned by Gary Rosenfield, the owner and sole director and officer of the Debtors, to purchase the Debtors¹ Business for $30,000 cash plus the assumption of contractual obligations as stated in this notice. All competing bids should be made before or at the hearing. NOTICE IS HEREBY GIVEN that AEROTECH, INC. ("AeroTech") and INDUSTRIAL SOLID PROPULSION, INC. ("ISP"), debtors and debtors-in-possession (collectively, "Debtors" or "DIPs") have filed a Motion To Sell Assets Free and Clear Of Liens and Assign Unexpired Leases, Executory Contracts, Intellectual Property Rights and Licenses (the "Motion"). In addition to the sale, the Debtors¹ Motion requests the authorizing the Debtors to assume and assign all their executory contracts and unexpired leases to Buyer, authorizing the Debtors to assign all their licenses and permits to the Buyer to the extent permitted by law, and for such other and further relief as the Court deems just and equitable.

Assets AeroTech and ISP own fixed assets (such as equipment, molds, furniture, tooling & fixtures), inventory (such as raw materials, work in process and finished goods), accounts receivable, intellectual property (such as business name, formulas, sources of supply, patents, trademarks, copyrights, logos and websites). A list of Equipment Inventory is attached hereto as Exhibit ³A². A list of Patents is attached hereto as Exhibit ³B². A list of raw material, work in progress and completed kits and rocket motors is available from Debtors¹ counsel. A list of license agreements is attached as Exhibit ³C². Copies of the license agreements are available from Debtors¹ counsel. In addition, Debtors have accounts receivable. A list of such accounts receivable is available from Debtors¹ counsel after executing a confidentiality agreement.

Contracts & Leases AeroTech and ISP have executory contracts and unexpired leases for equipment, offices and the rocket motor production facility. A list of these contacts is attached as Exhibit ³D². Copies of these contracts are available from Debtors¹ counsel. The Debtors¹ Motion seeks authority to assume and assign to the successful Bidder these contracts and leases. However, the successful bidder can choose not to assume any contract it does not want to assume.

Licenses & Permits AeroTech and ISP have Cedar City business licenses, Bureau of Alcohol, Tobacco and Firearms ("ATF") explosive manufacturing licenses, U.S. Department of Transportation ("DOT") EX-numbers, ISP's U.S. State Department ITAR registration, National Association of Rocketry, Tripoli Rocketry Association, Canadian and California State Fire Marshal rocket motor certifications. To the extent permitted by law, the Debtor will be assigning to the successful Bidder the licenses and permits. Collectively, these Assets, Contracts & Leases and Licenses & Permits are referred to as the "Business". A Purchase Offer for the Business has been made as follows: Buyer: RCS (an insider). Price: Thirty Thousand Dollars ($30,000.00). Payable: The purchase price will be paid at closing in cash or certified funds. Terms: Assets to be transferred and conveyed at Closing by bills of sale and other documents required to transfer good and marketable title and assignments; Debtors shall assign the executory contracts and unexpired leases and licenses and permits to the Buyer through assignment documents as the Buyer may reasonably request; Buyer will assume the obligations of such contracts and leases. The successful Buyer must be licensed to receive the Debtors¹ rocket motors and explosive materials from the applicable agencies. Pending licensing of the successful Buyer, the rocket motors and explosive materials will be stored in the Debtor¹s facility in Cedar City, Utah and the successful Buyer will be responsible for payment of the facility¹s rent and insurance. The successful Buyer will not be entitled to possession of the rocket motors or explosives until it holds the appropriate licenses. Potential bidders may inspect the Debtor¹s facility after executing a confidentiality agreement. Additional information is available at the Debtors¹ website

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Source: ROL Newswire Service

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Didn't the dates get reversed in the above? I can believe that an announcement went out today regarding a sale to happen on Feb 25...

Someone needs to buy 'em up and maintain 'em as an intact operation.

That way the "person (i.e., company) who made the explosives" will clearly continue to exist as the same "person" with respect to DOT regulations (and thus the shipping classifications and approvals will remain valid).

Even if it's Jerry that buys 'em.... :)

-dave w

Reply to
David Weinshenker

The buyer doesn't have much choice about continuing to operate at Cedar City. The buyer must assume the lease for the Cedar City facility.

I suppose the buyer could buy out the lease or make the payments while not using the Cedar City facility, but I doubt any buyer could be profitable that way.

Nobody besides someone manufacturing APCP would have much of a use for the Cedar City facility as the building is totally custom.

Brian Elfert

Reply to
Brian Elfert

So, has anyone sent an e-mail to these folks??:

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-Fred Shecter NAR 20117

Reply to
Fred Shecter

Why, so they can do to AT what they did to NCR?

Reply to
RayDunakin

We can always count on Ray to show us how the glass could possibly be half empty. Or entirely empty.

Reply to
Jerry Irvine

I bid $38 for the time machine.

Go for it Jerry!

Bob Kaplow NAR # 18L TRA # "Impeach the TRA BoD" >>> To reply, remove the TRABoD!

Reply to
Bob Kaplow

I'll wager an adult beverage of your choosing they won't take the deal. Look at their website:

primary demand

in early-stage companies, turnarounds, or companies with project-based revenues. We do not offer bridge financing.

AT doesn't fit. Estes does.

Oh, wait a minute. This is RMR, not my office, right??? ;-)

= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = Mark B. Bundick mbundick - at - earthlink - dot - net NAR President www - dot - nar - dot - org

"A closed mouth gathers no foot."

Reply to
Mark B. Bundick

They are "corporate" permits.

Reply to
Jerry Irvine

And we can always count on jerry to show us how the glass could possibly be filled to the top with BULLCRAP.

Reply to
Dave Grayvis

Just remember:

To an optimist, the glass is half full.

To a pessimist, the glass is half empty.

To an engineer, the glass is twice as big as it needs to be.

David Erbas-White

Reply to
David Erbas-White

To an economist it is not in equilibrium.

Jerry

Reply to
Jerry Irvine

in early-stage companies, turnarounds, or companies with project-based revenues. We do not offer bridge financing.

Wanna invest in a retirement business?

Bob Kaplow NAR # 18L TRA # "Impeach the TRA BoD" >>> To reply, remove the TRABoD!

Reply to
Bob Kaplow

Close enough to walk. Probably a block from the train station that Mark uses to get to and from work.

Bob Kaplow NAR # 18L TRA # "Impeach the TRA BoD" >>> To reply, remove the TRABoD!

Reply to
Bob Kaplow

invest in early-stage companies, turnarounds, or companies with project-based revenues. We do not offer bridge financing.

Nah, just want to retire :-)

John

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Reply to
John Stein

Do the math again.

Annual cash flows of $2 million or more Recurring annual revenues in excess of $10 million

This is the kind of flow necessary to support the subordinated debt structure this VC firms appears to favor.

In exploring their website it's pretty obvious they're in the business of collecting funds from private investors, finding companies that meet their criteria, but are in a short term crunch, providing sub debt to tie the company over, along with some equity participation, then letting / helping the company get back on its feet or let the management grow the business, then exit.

Even if AT had this kind of cash flow, I don't see the hobby business fitting that model.

YMMV.

= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = Mark B. Bundick mbundick - at - earthlink - dot - net NAR President www - dot - nar - dot - org

"Where are we going and why am I in this handbasket?"

Reply to
Mark B. Bundick

No my mileage does NOT vary. I agree!

And it is a direct result of YOUR policies as NAR President that is the case.

Thank you in arrears.

Jerry

Reply to
Jerry Irvine

Yes jerry, it's all about you.

Reply to
Dave Grayvis

Well maybe you have more faith in Estes, but I see no evidence that they would be good owners of Aerotech. They totally botched up and killed off NCR; they were one of the backstabbing traitors who perpetrated the infamous "flaming reloads" video in an effort to screw AT (and in the end screwed us all by getting CPSC, ATF, etc involved); and they wouldn't help with any of the efforts to fight ATF regulation nor the "FlyRockets" promotion. Heck, they don't even run their own company very well.

Reply to
RayDunakin

Jerry blathered:

You're right! If the national orgs hadn't done so much to make rocketry legal, AT certainly would not make as much money as it does now. In fact there would probably be no Aerotech.

Reply to
RayDunakin

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