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 Debtors 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. (RCS), a Utah corporation owned by Gary Rosenfield, the owner and sole director and officer of the Debtors, to purchase the Debtors 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 Debtors 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 A. A list of Patents is attached hereto as Exhibit B. A list of raw material, work in progress and completed kits and rocket motors is available from Debtors counsel. A list of license agreements is attached as Exhibit C. Copies of the license agreements are available from Debtors counsel. In addition, Debtors have accounts receivable. A list of such accounts receivable is available from Debtors 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 D. Copies of these contracts are available from Debtors counsel. The Debtors 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 Debtors 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 Debtors facility in Cedar City, Utah and the successful Buyer will be responsible for payment of the facilitys 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 Debtors facility after executing a confidentiality agreement. Additional information is available at the Debtors websitehttp://www.aerotech-rocketry.com .
Source: ROL Newswire Service
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ROL News wrote:

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
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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
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So, has anyone sent an e-mail to these folks??: http://www.prairie-capital.com/estescox.html
-Fred Shecter NAR 20117
-- """Remove "zorch" from address (2 places) to reply.
writes:

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<< So, has anyone sent an e-mail to these folks??: http://www.prairie-capital.com/estescox.html
Why, so they can do to AT what they did to NCR?
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snipped-for-privacy@aol.com (RayDunakin) wrote:

We can always count on Ray to show us how the glass could possibly be half empty. Or entirely empty.
--
Jerry Irvine, Box 1242, Claremont, California 91711 USA
Opinion, the whole thing. <mail to: snipped-for-privacy@gte.net>
  Click to see the full signature.
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Jerry Irvine wrote:

And we can always count on jerry to show us how the glass could possibly be filled to the top with BULLCRAP.
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Jerry wrote: << We can always count on Ray to show us how the glass could possibly be half empty. Or entirely empty. >>
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.
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snipped-for-privacy@aol.com (RayDunakin) wrote:

That is not literally true. NCR itself had unrealistic expectations and Estes (Tunik) took it on the shorts with the tooling expenses. Learn facts.

You have the 1991 TRA party line memorized. I'll give you that.
--
Jerry Irvine, Box 1242, Claremont, California 91711 USA
Opinion, the whole thing. <mail to: snipped-for-privacy@gte.net>
  Click to see the full signature.
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Jerry Irvine wrote:

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
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To an economist it is not in equilibrium.
Jerry
--
Jerry Irvine, Box 1242, Claremont, California 91711 USA
Opinion, the whole thing. <mail to: snipped-for-privacy@gte.net>
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On Tue, 27 Jan 2004 21:45:50 GMT, "Fred Shecter"

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

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."
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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! <<< Kaplow Klips & Baffle:    http://nira-rocketry.org/LeadingEdge/Phantom4000.pdf www.encompasserve.org/~kaplow_r/ www.nira-rocketry.org www.nar.org
Save Model Rocketry from the HSA! http://www.space-rockets.com/congress.html
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writes:

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

Nah, just want to retire :-)
John

http://nira-rocketry.org/LeadingEdge/Phantom4000.pdf
www.nar.org
http://www.space-rockets.com/congress.html
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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! <<< Kaplow Klips & Baffle:    http://nira-rocketry.org/LeadingEdge/Phantom4000.pdf www.encompasserve.org/~kaplow_r/ www.nira-rocketry.org www.nar.org
Save Model Rocketry from the HSA! http://www.space-rockets.com/congress.html
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Jerry Irvine ( snipped-for-privacy@gte.net) wrote:

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?"
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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
--
Jerry Irvine, Box 1242, Claremont, California 91711 USA
Opinion, the whole thing. <mail to: snipped-for-privacy@gte.net>
  Click to see the full signature.
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Jerry Irvine wrote:

Yes jerry, it's all about you.
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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.
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snipped-for-privacy@aol.com (RayDunakin) wrote:

I was Aerotech's FIRST customer and FIRST dealer.
--
Jerry Irvine, Box 1242, Claremont, California 91711 USA
Opinion, the whole thing. <mail to: snipped-for-privacy@gte.net>
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