The NORDAM Group announced late Sunday it has filed voluntary petition for protection under Chapter 11 bankruptcy reorganization.
In a news release, NORDAM says the filing comes after a protracted contract dispute with Pratt & Whitney Canada regarding the PW800 nacelle system used in its Gulfstream G500 and G600 aircraft.
The release goes on to say, 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,” NORDAM CEO Meredith 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.”
7/10/2018 Related Story: Tulsa NORDAM Employees Affected By Contract Dispute With Canadian Company
Madden emphasized Sunday'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,” Meredith Madden said, adding that the company’s focus is on programs with high-growth potential and a strong competitive position in several market niches.
7/16/2018 Related Story: NORDAM Enters Multi-Year Agreement With Finland's Largest Airline
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 issues 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.”