Tamarack Aerospace has formally exited Chapter 11 voluntary reorganization with the issuance of a final decree from the U.S. Bankruptcy Court for the Eastern District of Washington.
This closes a period for the company that began in June 2019 when it sought protection following the grounding of 91 Cessna Citation jets with its active winglets installed.
The company holds more than 30 patents on its active winglet technology, which thus far has been installed on Cessna Model 525, 525A, and 525B platforms.
“The unusually brief grounding was lifted by both the FAA and the European Union Aviation Safety Agency [EASA] after a review of all facts relating to the no-injury incident,” said the company in a statement. “In addition, incorporating all service bulletins, which Tamarack had previously made available to the fleet at no charge, was implemented as a fleet remedial action.”
After the “unknowns of the grounding,” said Tamarack president Jacob Klinginsmith in an interview with Flying, “we can focus on supporting the fleet.”
The move allowed the company to repay creditors and reorganize into a more efficient business.
Tamarack received $1.95 million from its vendors and existing customers shortly after filing, which allowed it to complete the restructuring with its creditors “intact,” according to the statement.
“The Eastern District of Washington confirmed the Plan of Reorganization in March 2020, just before the global pandemic impacted all markets and industries. Only 10 percent of businesses that enter Chapter 11 reach the point of plan confirmation, which is a testament to the health and viability of Tamarack and its product.”
Tamarack can now focus on building its business, which includes active winglet installations on more than 140 CJs worldwide. It has opened “Transformation Centers” in Aiken, South Carolina, and Oxford, England, in addition to its main facility in Sandpoint, Idaho, and 20 authorized service centers.
