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ICON Aircraft, the manufacturer of the ICON A5 amphibious sport plane, announced Thursday that it had filed for Chapter 11 bankruptcy. The company plans to sell its business while supporting customers and operations during the Chapter 11 process.
ICON began a restructuring process by filing for Chapter 11 protection, sharing that it planned to pursue a sale of the business under Section 363 of the Bankruptcy Code while it continues to support its customers and operations. The management team is committed to the company's mission of revolutionizing personal aviation and plans to stay committed to supporting owners and employees during this transition.
The company said it plans to keep operations running smoothly during the restructuring process to minimize any potential disruptions. ICON Aircraft CEO, Jerry Meyer, stressed the company's dedication to its stakeholders.
"We plan to continue to produce and sell aircraft and provide first-rate service, training, and support to our customers," Meyer said. "We believe this process will enable the business to address its current challenges and emerge with new ownership - stronger than ever - and continue building amazing planes with a focus on innovation, safety, and incredible flying experiences."RELATED STORY: ICON A5 gets FAA certification in primary category, company looks to expand (December 2023)
In December, when its A5 received FAA certification, the company said it made its aircraft one of only a few light sport aircraft (LSA) manufacturers in the world to meet the standards and that the move will allow ICON to pursue reciprocal agreements between the FAA and aviation governing bodies outside of the U.S., bringing the ICON A5 to a global market.While undergoing the restructuring process, ICON will keep open lines of communication with its customers, employees, suppliers and other stakeholders, ensuring transparency. The company will provide updates on any important developments as the process progresses.
"The purpose of the Chapter 11 filing is to resolve the Company's financial challenges and position the A5 for success for years to come," Meyer said. "We understand that this situation creates a hardship for everyone involved. However, without taking these steps, there is not a viable path forward for the business to do what we do best - build incredible airplanes and support our aircraft owners."
ICON expects to continue operations throughout the Chapter 11 restructuring process, seeking to expedite the sale process with approval from the Bankruptcy Court. The company arranged for the debtor in possession of financing to fund operations after the petition, as well as costs in normal development. To reduce the negative effects on business and the value of its estate, ICON has filed customary motions with the Bankruptcy Court to get court approval and sustain operations during normal operations, including honoring commitments to its customers and vendors, as well as fulfilling obligations to employees.