US aerospace company Nordam Group has emerged from bankruptcy court protection after reorganisation and a $140 million cash infusion from private equity company The Carlyle Group.
Court papers show that Carlyle, via affiliate Amelia Acquisition, purchased 45% of Nordam’s shares, injecting needed capital into a company that had struggled under a nacelle agreement with Pratt & Whitney.
The reorganisation, which took effect 9 April with Nordam’s bankruptcy exit, left the family of Nordam founder Raymond Siegfried with 55% ownership of the company.
Law firm DLA Piper helped Nordam reach the reorganisation deal.
The agreemnt also calls for Nordam’s creditors to be “paid in full”, says the Tulsa-based company, which makes aerostructures and provides repair services.
Nordam filed for bankruptcy protection in July 2018.
The company had “faced financial and operating difficulties as a result of” costs stemming from a 2010 agreement with Pratt & Whitney Canada to develop and manufacture nacelles for PW800 engines that power Gulfstream G500 and G600 business jets.
“The challenges associated with [the nacelle agreement] negatively impacted the debtors’ balance sheet and available liquidity, and jeopardised their historically profitable position and fundamental ability to continue operating,” Nordam said in court filings.
Nordam was freed from the nacelle agreement in September 2018 by selling the nacelle business to Gulfstream.
A judge with US Bankruptcy Court for the District of Delaware approved the terms of the reorganisation in March.