Aerospace company files for Chapter 11 bankruptcy protection

A family-operated aerospace business in another state recently determined that it needed to take drastic measures to remedy its financial situation. The company decided to file for Chapter 11 bankruptcy protection. Companies in Massachusetts that likewise find themselves in an impecunious position may benefit from filing for bankruptcy protection as well.

In the case of the out-of-state company, the aerospace company that filed for bankruptcy has been operating since the late 1960s. It manufactures parts for airplanes and also repairs jet and airplane engines. The company employs about 1,800 people and additionally operates in other countries.

The company recently reported that it decided to file for bankruptcy following a prolonged contract dispute involving another company over a nacelle system. Company officials said that the business did not want to file for bankruptcy but did it so that it could finally move on and operate with no interruptions. Officials said they expect the company to emerge from its Chapter 11 reorganization process as a stronger, more successful company.

Sometimes, companies in Massachusetts encounter financial roadblocks that make it impossible for them to keep doing business as usual. For instance, some companies face lawsuits that hamper their ability to operate effectively, whereas others fall victim to changes in the market. In these situations, filing for Chapter 11 bankruptcy protection may be the best move they can make. An attorney can help business owners to navigate this multifaceted process with the goal of gaining the fresh financial starts they need and achieving unprecedented success in the years ahead.