SANDPOINT — Friendly investors are swooping in to help Tamarack Aerospace Group.
The company announced on Friday that it has received final U.S. Bankruptcy Court authorization to accept the full amount of $1.95 million in committed debtor-in-possession financing, a special kind of financing meant for companies that are in distress and in bankruptcy. The financing method typically has priority over existing debt, equity and other claims.
The new liquidity was provided by a consortium of friendly investors which include Active Winglet customers, vendors and other company stakeholders who are committed to Tamarack’s future.
“In a matter of a few days, these supporters stepped forward enthusiastically to participate in this opportunity. They understand our industry and believe in the long-term value of our innovative Active Winglet product. This financing from friendly investors is now the only debt secured by our IP and is an important step in our reorganization which allows us to continue serving our expanding fleet,” Tamarack President Jacob Klinginsmith said in a statement.
Tamarack Aerospace Group voluntarily filed for bankruptcy in June as a direct result of airworthiness directives from federal and European aviation regulators. The European Union Aviation Safety Agency and the Federal Aviation Administration issued airworthiness directives, which effectively grounded Cessna 525-series aircraft equipped with Tamarack’s active load alleviation system, also known as ATLAS.
The system is composed of wing extensions with upturned winglets and additional flight-control surfaces which are meant to improve range, speed and fuel efficiency.
Flying Magazine reported that the FAA approved an alternative method of compliance for all Citation jets fitted with Active Winglets on July 10 to return the aircraft to flying status. It requires operators to comply with a service bulletin which calls for the replacement or upgrade of an actuator motor on the trailing edge of the camber service.
Tamarack is providing the upgrades free of charge, Flying reports.
“We’re excited to be back on track with our sales and installation process,” Klinginsmith said in the statement. “We have several installations scheduled or in process now, and we’re seeing strong interest — it’s going to be a good second half of the year.”
Keith Kinnaird can be reached by email at firstname.lastname@example.org and follow him on Twitter @KeithDailyBee.