Tulsa aircraft engine-maker NORDAM Group announced it has filed Chapter 11 bankruptcy reorganization and protection.
The company made the announcement Sunday night, indicating that its foreign subsidiaries and affiliates were not part of the filing.
“The action comes following a protracted contract dispute with Pratt & Whitney Canada regarding the PW800 nacelle system used in Gulfstream G500 and G600 aircraft,” stated the company.
“This court filing is not what we wanted to do, but it is what we had to do,” said NORDAM CEO Meredith Madden in the announcement. “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.
Headquartered in Tulsa, NORDAM has been owned and operated by the same Tulsa family since 1969 and employs 2,500 workers in North America, Europe and Asia.
Tulsa Regional Chamber CEO Mike Neal issued a statement on NORDAM announcement.
“NORDAM is an international leader in the aerospace and aviation industry, which is a critical sector of the Tulsa region’s economy. While we at the Tulsa Regional Chamber are disappointed to learn this news, we will continue to support them in any way we can. They have made the right decision to help protect their employees, preserve the company’s future and remain a vibrant part of our regional economy for decades to come. A number of companies in Tulsa have emerged stronger following Chapter 11 reorganization proceedings, and I’m sure this will be the case with NORDAM as well. We at the Chamber have tremendous respect for Meredith Siegfried Madden and her entire leadership team, and I’m confident they will succeed and continue as an employer of choice and a keystone of our aerospace and aviation industry.”
