(Bloomberg) -- Dynamic Aerostructures, which makes specialized parts for US fighter jets and SpaceX and Blue Origin spacecraft, filed for bankruptcy with plans to sell itself at a court-supervised auction.
The aerospace and defense supplier is backed by private equity firm Endeavour Capital. Its operating unit Forrest Machining LLC, also known as FMI Aerostructures, was bought by Endeavour in 2021.
FMI’s Chief Executive Officer Eric Ellis blames the Chapter 11 case on quality-control problems discovered after the acquisition, rising inventory costs as a result of inflation, and money-losing customer contracts, in court documents. The business owes lenders nearly $55 million, the filings show.
In an emailed statement, Ellis said the goal of filing for bankruptcy is to sell the business, so as to maximize value and strengthen its finances. A deadline of April 7 has been proposed for bids from interested parties, according to the filings.
“It is business as usual across FMI,” Ellis added.
FMI has supplied structural components for the likes of commercial plane maker Boeing Co. and military jet makers Lockheed Martin Corp. and Northrop Grumman Corp., including Northrop’s B-2 Spirit stealth bomber. It employs more than 180 people, mostly at its manufacturing plant in Valencia, California.
The case is Dynamic Aerostructures, 25-10292, US Bankruptcy Court, District of Delaware (Wilmington).
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