The NORDAM Group and its domestic subsidiaries filed a voluntary petition for protection under Chapter 11. NORDAM’s foreign subsidiaries and affiliates have not filed for bankruptcy in the U.S. or in their home jurisdictions.
The action follows a protracted contract dispute with Pratt & Whitney Canada regarding the PW800 nacelle system used in Gulfstream G500 and G600 aircraft.
According to documents filed with the U.S. Bankruptcy Court in Delaware, JPMorgan Chase will act as agent for a $45 million supermajority senior secured revolving credit facility to support the restructuring. The facility includes interim authority to draw up to $25 million under the proposed DIP financing.
The additional funds will help ensure operations continue uninterrupted during the restructuring process.
“We are confident in our company and its future. We will emerge from the Chapter 11 process successfully, as an even stronger company,” said NORDAM CEO Meredith Madden. “Outside of the contract situation with Pratt & Whitney Canada, our company programs and product lines are performing well, and we are pursuing several new business opportunities.”
Founded in 1969 and based in Tulsa, OK, NORDAM is an independently-owned aerospace company that designs, certifies and manufactures integrated propulsion systems, nacelles and thrust reversers for business jets, along with composite aircraft structures, interior shells, custom cabinetry and aircraft windows.
