Tulsa-based The Nordam Group exits bankruptcy
By Rhett Morgan, Tulsa World rhett.morgan@tulsaworld.com
Tulsa-based The Nordam Group announced Tuesday that it has exited bankruptcy, ending 8 ½ months of reorganization under Chapter 11.
The emergence of the aerospace-composite manufacturing and repair company follows the U.S. Bankruptcy Court for the District of Delaware's approval of the company's reorganization plan and court and regulatory approval of an investment partnership with private equity firm The Carlyle Group.
Washington, D.C.-based The Carlyle Group last month invested $140 million into Nordam, according to court records.
Nordam has secured funding needed to support future growth, and all creditors will receive full payment, according to company CEO Meredith Siegfried Madden.
"I'm pleased we have reached a quick resolution for our stakeholders, our customers, and our suppliers and lenders," Madden said in a statement. "We're obviously extremely proud to be paying back all our creditors in full. That was a commitment we made, and we delivered on that commitment.
"I'm grateful for the support our customers and suppliers have shown us. And I'm very excited to be turning the page to a new chapter for Nordam as we celebrate our 50th anniversary this year. In combination with our new partner The Carlyle Group, we are privileged to be able to secure the future for our stakeholders and now have the funding to support our path toward future growth."
In late July, Nordam, along with its domestic subsidiaries, announced that it was filing for protection under Chapter 11 reorganization. The company blamed increased expenses incurred in a long-term contract dispute with manufacturer Pratt & Whitney Canada over the PW800 nacelle system used in Gulfstream G500 and G600 aircraft. Unanticipated costs connected with the program led Nordam to spend more than $200 million on it, a move that "materially jeopardized" its profitability, federal records indicated.
On Oct. 1, Gulfstream Aerospace Corp. announced that it had purchased Nordam's manufacturing line that produces nacelles for the Gulfstream G500 and Gulfstream G600.
As part of the Chapter 11 exit plan, Nordam also is taking out from JPMorgan Chase Bank a seven-year, $240 million secure loan and a five-year, $100 million revolving loan, documents show.
Nordam provides maintenance, repair and overhaul services (MRO) to the business, commercial and military aviation end-markets. Employing about 2,500 people worldwide and roughly 1,800 in Tulsa, the company has nine operations and customer support facilities on three continents.