ROL NEWS--RCS to Enter Hobby Rocket Motor Market

RCS to Enter Hobby Rocket Motor Market January 28, 2004 Web posted at: 4:36 PM EST

(ROL Newswire) -- RCS Rocket Motor Components, Inc. is announcing its intention to enter the single-use and reloadable motor market for model and high-power rocketry.

As a result of the October 2001 AeroTech fire, and in order to prevent fire claimants from interfering with the future operations of the business, the assets of AeroTech and Industrial Solid Propulsion (ISP), Inc. had to be offered for sale in a bankruptcy auction. All proceeds raised from this sale will be used to pay creditors and fire claimants, after costs and expenses. An auction for the assets of AeroTech and ISP is currently scheduled for February 25, 2004 in federal Bankruptcy Court in Las Vegas at 1:30 PM.

RCS has made an opening offer to purchase all the assets of the business. If RCS wins the auction, the existing AeroTech product line will continue to be manufactured and sold under the "AeroTech Consumer Aerospace" brand by RCS, with the same management and production team currently employed by AeroTech. If RCS does not win the auction, the company has made contingency plans to enter the market with a series of product offerings that are sure to be a hit with consumers. This will include reloads designed to fit seamlessly into AeroTech and other motor hardware. RCS has all federal, state and local licensing in place to begin production immediately. More information will be released after the auction takes place.

Source: ROL Newswire Service

(reposted, as original post was truncated)

- iz

RCS =Gary Rosenfield's Am/EXmotor store

Didn't John Coker and somebody else buy into Aerotech when Gary got divorced and she wanted half the company.

My guess is that RCS is Rosenfield, Coker, and Somebody.

Eric Gates, if I'm not mistaken

- iz

FWIW, looks like John Coker hasn't updated

-dave w

Ahhhhhhh, the power of a woman. Didn't he get married last summer? He might have something else on his mind these days.

Rosenfield Consulting Services.

Tom

Yeah, one of the last updates was the flight of his "Just Married" rocket...

-dave w

He better look out, or he will join me in the "not" building anything gang since I am in the "Now I have Kids" rocket club.

Welcome to the club, Kurt!! ;)

-Rich (I'm not build> He better look out, or he will join me in the "not" building anything

Rosenfield Consulting Service

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

Wasn't there a third partner, Dr. Rocket. And aren't those three the folks who walked away and turned everything over to Gary.

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

Those are the guys but walk away is not how I would have described it.

Please cue us in on more of the story as you heard it, Jerry. -- Richard "geez, if it's not one thing, it's another with Aerotech" Hickok

I would be more comfortable replying to a specific question or topic, as many of the open ended answers I give tend to make the rounds.

I thought Ken Biba had a major stake, perhaps even a majority, in AeroTech pre-fire.

From the BK papers:

John Coker 276,278 Ken Biba 276,278 Dirk Gates 225,000 John Coker 200,000

My sympathies to John.

I hear his life is getting better every day. Congrats!

Jerry

and the insurance claim for the fire was paid to whom?

- iz

Property damage to Gary's lawyer who knowing lawyers, absorbed most of it.

About $1m

Personal injury covered by workman's comp. (Great news for Aerotech).

Liability $1m+ (don't know his limits) but they were exhausted and the claims in BK are well in excess of that.

It would appear the insurance companies are so accustomed to being stiffed by BK they are in no hurry to get anything but whatever minor quick cash comes from a sale. At least that would be typical practice. You never know about any particular case.

Especially since there is an above avergae frenzy to buy up the AT assets by rocketry zealots.

The parallel effort to bring RCS up means the only value of AT in the final analysis is the tools. Whoever buys those can rent them to RCS, but we can all presume he has been feverishly molding nozzles for the past year or so.

The risk to Rosenfield is if a Chapter 11 plan is installed, then he would have a duty of care to AT (ie NOT RCS) (and an employment obligation). The good news is as soon as the creditors get tired of the cash flow they will bail and Gary can then file Chapter 7, perhpas a year or two down the road.

In either case it looks to me as if motor production itself will continue.

Gary was under insured for property damage. PD insurance is cheap.

Jerry