Tulsa-based NORDAM Group files for Chapter 11 bankruptcy

(File/Courtesy of the NORDAM Group)

A Tulsa-based aerospace company has announced that it has voluntarily filed a petition for protection under Chapter 11 reorganization.

The NORDAM Group, Inc. and its domestic subsidiaries and affiliates filed the petition amid a contract dispute with Pratt & Whitney Canada over the PW800 nacelle system used in Gulfstream G500 and G600 aircraft, according to a press release. NORDAM recently suspended production on the components due to the contract dispute.

"This court filing is not what we wanted to do, but it is what we had to do," NORDAM CEO Meredith Madden said in the release. "It is the best path forward for our company because it allows our business to operate without interruption.”

Chapter 11 of the Bankruptcy Code allows a company to reorganize while staying in business and paying off its debt over time.

“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.

NORDAM employs around 2,500 people around the world and about 1,800 in Tulsa. It's not clear how many of them will be affected by the move, but NORDAM says its bank lenders will provide additional financing to "help ensure operations continue uninterrupted during the restructuring process."

“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,” Madden said. She says the company’s focus is on programs with high-growth potential and a strong competitive position in several market niches.

NORDAM's foreign subsidiaries and affiliates have not filed for Chapter 11 protection in the United States or in their home jurisdictions, according to the news release.

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