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ICON Aircraft files Chapter 11 bankruptcy, plans to sell business
By Sarah Lizee
Olympia, Wash., April 4 – ICON Aircraft filed Chapter 11 bankruptcy on Thursday in the U.S. Bankruptcy Court for the District of Delaware, according to a press release.
The amphibious sport plane maker said it has started a strategic restructuring process and plans to pursue a sale of its business while continuing to support its customers and operations.
“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,” Jerry Meyer, chief executive officer, said in the release.
The company’s prepetition debt includes about $105.04 million of convertible notes and about $65 million of other secured notes.
ICON said it has arranged for $9 million debtor-in-possession financing from one of its convertible noteholders, FeiRen International Co., Ltd., to fund post-petition operations and costs in the ordinary course.
The company is seeking interim access to $4 million of the super-priority senior secured multi-draw term loan DIP facility.
The facility is set to mature in six months and bear interest at 15% per annum, due monthly and payable in kind.
The company said it has filed customary motions with the bankruptcy court to sustain its operations.
In its petition, the company reported $100 million to $500 million in assets and $100 million to $500 million in liabilities.
The largest unsecured claims come from East West Bank, based in El Monte, Calif., with a $65 million note claim, and Co-Production International Inc., based in San Diego, Calif., with a $1.03 million trade claim.
ICON Aircraft is represented by Sidley Austin LLP as its legal counsel, Armanino LLP as its financial adviser and SSG Capital Advisors, LLC as its restructuring investment banker.
The company is based in Vacaville, Calif. Its Chapter 11 case number is 24-10703.
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