Icon Aircraft Seeks New Ownership Following Chapter 11 Bankruptcy Filing, Headed for Auction
Proceedings to ascertain a buyer for the A5 amphibious aircraft will commence on June 13th, with qualified bids due on June 10th.
(Vacaville, California) After filing for Chapter 11 bankruptcy protection last month, California-based airplane manufacturer ICON Aircraft, maker of the A5 amphibious light sport airplane, is tentatively scheduled for an asset auction in June, according to the Aircraft Owners and Pilots Association (AOPA); proceedings to ascertain a buyer will commence on June 13th with qualified bids due on June 10th.
Photo of Icon Aircraft's A5 amphibious light sport aircraft in flight, courtesy of Icon Aircraft.
Post-auction, the U.S. Bankruptcy Court for the District of Delaware will hold a confirmation hearing on June 18th, per AOPA. Under Chapter 11, according to United States Courts, businesses typically propose a reorganization plan to continue operations while paying off creditors over time.
U.S. based- Icon’s A5 first flew in 2008 and officially entered the market in 2015; while initial sales took off, the company struggled to keep up with demand, reporting an initial backlog of approximately 1,250 orders with promises of eventually delivering 500 units per year. Per The Air Current, Icon has recorded 209 deliveries of the A5 since the end of 2023.
Photo of Icon Aircraft's A5 amphibious light sport aircraft flying over water, courtesy of Icon Aircraft.
In addition to experiencing significant production delays, Icon has faced mounting turmoil, with three reported accidents in 2017 and three more back-to-back in 2019, according to AOPA.
In January of 2022, Icon named employee Jerry Meyer interim Chief Executive Officer; at that time, Meyer shared in a press release posted on Icon’s website that he was focused on “increasing revenue with a well-defined future product roadmap, lowering manufacturing costs through efficiency, and controlling operating expenses.”
Flying Magazine reported that by March of 2024, Icon had incorporated upgrades to the A5 that allowed the airplane to carry increased gross weight while providing more fuel efficiency for longer flights.
Close-up photo of Icon Aircraft's A5 amphibious light sport aircraft, courtesy of Icon Aircraft.
The improvements were not enough to stave off the ongoing turmoil and in April 2024, following Icon’s bankruptcy filing, CEO Meyer shared the following statement on the company’s website, “We plan to continue to produce and sell aircraft to provide first-rate service, training, and support to our customers. 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.”
Icon has identified a “stalking horse bidder” in SG Investment America, which will lead the bidding on the company's assets and help to set its minimum price at auction, per Icon.
