New Chapter 11 Filing - Aerospace Holdings Inc.

Aerospace Holdings Inc.

  • 3/28/17 Recap: Designer and manufacturer of machined parts, fabricated components and tooling for commercial aerospace and defense markets filed for bankruptcy to effectuate a 363 sale to a strategic competitor, Harlow Aerostructures LLC, which, prepetition, purchased the distressed senior secured debt held by Comerica Bank and Fifth Third Bank. Harlow will provide DIP financing and serve as the stalking horse for the company's assets. This appears to be a story about poor strategic acquisitions, reliance on two big projects that were ultimately cancelled (Lockheed Martin F-22 fighter jet and the Airbus A380) and reductions in military spending (which may or may not be related to the cancellations).
  • Jurisdiction: D. of Delaware 
  • Capital Structure: $38.6mm funded senior secured debt (orig: Comerica Bank), $27.1mm subordinated debt (Brookside Mezzanine Partners), $21.6mm promissory notes    
  • Company Professionals:
    • Legal: Greenberg Traurig LLP (Nancy Mitchell, Matthew Hinker, Sara Hoffman, Dennis Meloro)
    • Financial Advisor: Conway MacKenzie Inc. (Matthew Sedigh, Michael Flynn)
    • Investment Banker: G2 Capital Advisors LLC
    • Claims Agent: BMC Group (*click on company name for docket)
  • Other Parties in Interest:
    • Primary debtholders: Corinthian Capital Group, Brookside Mezzanine Partners, Patriot Capital, Catalus Capital Management
    • Official Committee of Unsecured Creditors
      • Legal: Drinker Biddle & Reath LLC
      • Financial Advisor: Gavin/Solmonese LLC