[8] Adam Aircraft President Duncan Koerbel was quoted as saying: "To provide for our future growth, we must be strategic in our focus by managing current cash expenditures to ensure adequate time to secure financing for the long term.

We're off to a good start in this effort with assistance from our partner, Citibank, but we need to be able to provide them with sufficient time working with potential investors to secure long term financing.

[10] This prediction turned out correct, as the company filed for liquidation under Chapter 7 on 15 February 2008[3][4] The government of the City of Pueblo, Colorado demanded that USD$2M in financial incentives paid to firm be returned.

[10] On April 11, 2008, the United States Bankruptcy Court for the District of Colorado approved the sale of the company for $10 million to AAI Acquisition Inc an entity jointly controlled by Russian firms Industrial Investors and Kaskol.

At the time of purchase, AAI VP Dmitry Shokhin said: "We plan to revive Adam Aircraft's operations, including continuing the process of certification for the A700 jet".

[12] According to a July 2008 statement by Sergey Generalov, CEO and owner of Industrial Investors, more than ten other companies had bid for the assets of bankrupt AAI.

The company also confirmed that they would not produce the A500 for the foreseeable future, due to the global drop in demand for piston-engined aircraft[13] Citing the economic crisis of 2008 AAI Acquisition President and CEO Jack Braly announced on 28 October 2008 that A700 "Flight test and other development activity have been suspended".

"[16] In April 2009, unable to find non-aerospace work for its facilities, new partners and out of operating capital, AAI Acquisition closed Adam Aircraft and laid off the last of its staff.

[6] In July 2009, real estate developer Thomas Hsueh purchased the remaining tooling, parts, and intellectual property of Adam Aircraft from the Russian investors.