Consulting and financial services firm Development Specialists Inc. (DSI) has set September 7 as the deadline for bids for the assets of the defunct Aerion Corp. DSI was appointed to oversee the sale of the assets of Aerion, which ceased operations in June 2021 after a nearly two-decade quest to bring a supersonic business jet to market.
Through judicial insolvency proceedings Similar to the bankruptcy process, the sale is conducted under Florida law instead of federal law. Joseph Luzinski, Senior Managing Director of DSI, oversees the application process. The proceeds from the sale of the assets must go to the debtors. GE Aviation had the largest claim, which in the original court documents was estimated at around $32 million, with Spirit AeroSystems and Boeing collectively owing nearly $8.5 million.
Much of Aerion’s assets surround its numerous patents. There were also fixed assets such as computers, software and wind tunnel models. Late last year, DSI sparked interest as it tried to capture asset value. “There are no valuations for these types of assets, there is no Kelley Blue Book or comps. There is no clear indication of the value of the assets,” Luzinski had said. AINsaying the market will determine that.
Under a court-approved process that was put in place this summer, written bids from qualified bidders must be delivered no later than September 7 to 4 p.m. EDT to DSI and counsel for the assignee, Baker & Hostetler. An auction date has been set for September 16.
“Our goal is to sell all assets in bulk or sell them in batches to maximize recovery for creditors,” Luzinski said.