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Privately-held, The Nordam Group and four affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 18-11699. The Tulsa-based Company, which provides aerospace components, manufacturing and repair services to the business aviation industry, commercial aircraft industry, and military and defense markets worldwide, is represented by Daniel J. DeFranceschi of Richards, Layton & Finger, P.A.
Further engagements include Weil Gotshal, as counsel, Huron Consulting Services, LLC, as financial advisor, and Guggenheim Securities, LLC, as investment banker. In a press release announcing the filing, the Company advised that, “The action comes following a protracted contract dispute with Pratt & Whitney Canada [“P&WC”] regarding the PW800 nacelle system used in Gulfstream G500 and G600 aircraft…. During an eight-year period, we invested in excess of $200 million. The PW800 nacelle system has FAA approval and is operating as expected, having flown more than 6,400 flight-test hours as of July 20 with exceptional performance and quality.”
Further commenting on the role of P&WC, documents filed with the Bankruptcy Court note, “Despite the Company’s efforts over several years, the Company has been unable to restructure its arrangements with P&WC in a commercially acceptable manner. P&WC has additionally asserted substantial going-forward damage claims against the Debtors under the LTPA, which the Company disputes.” The Company’s petition notes between 1,000 and 5,000 creditors; estimated assets between $500 million and $1 billion; and estimated liabilities between $100 million and $500 million.
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