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
formatting link

Source: ROL Newswire Service
Reply to
ROL News
Loading thread data ...
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??:
formatting link

-Fred Shecter NAR 20117
-- """Remove "zorch" from address (2 places) to reply.
Reply to
Fred Shecter
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
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
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
formatting link

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
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

Site Timeline

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.