NORDAM operations continue uninterrupted, fulfilling customer commitments
The NORDAM Group, Inc., together with its domestic subsidiaries and affiliates, today announced it has filed a voluntary petition for protection under Chapter 11 reorganization. NORDAM's foreign subsidiaries and affiliates have not filed for Chapter 11 protection in the United States or in their home jurisdictions.
The action comes following a protracted contract dispute with Pratt & Whitney Canada regarding the PW800 nacelle system used in Gulfstream G500 and G600 aircraft.
NORDAM CEO Meredith Madden stated: "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."
The filing is supported by additional financing from NORDAM's bank lenders to 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," Madden said.
"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."
Madden emphasized today's court filing in no way affects other NORDAM programs or customers.
"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," she said, adding that the company's focus is on programs with high-growth potential and a strong competitive position in several market niches.