NORDAM files for Chapter 11 bankruptcy protection
NORDAM, the component manufacturer and repair company based in Tulsa, Oklahoma, has filed for Chapter 11 bankruptcy protection.
The filing only affects NORDAM’s US operations, not its international operations or affiliates.
The voluntary filing will help the company reorganise and is supported by NORDAM’s bank lenders who will continue to support the company’s day-to-day operations.
In a statement issued on 23 July, the company’s CEO Meredith Madden said: “This court filing is not what we wanted to do, but it is what we had to do. It is the best path forward for our company because it allows our business to operate without interruption.”
NORDAM says that its filing comes after a protracted contract dispute with Pratt & Whitney Canada over engine nacelles for the Gulfstream G500 and G600.
Earlier in July the firm announced that it had suspended production of the nacelles, saying that it had spent months trying to resolve the issue:
“After months of unsuccessful attempts to resolve a contract dispute with Pratt & Whitney Canada, we have suspended production on the Gulfstream G500/G600 aircraft program where NORDAM has developed and is producing the aircraft’s nacelle system components,” said Ms Madden.
According to the statement, NORDAM has so far invested over $200 million in the G500 and G600 nacelle system.
“We are confident in our company and its future. We will emerge from the Chapter 11 process successfully, as an even stronger company,” said Ms. Madden.