Tamarack Aerospace, the company that designed and markets Atlas active winglets, has filed a Chapter 11 plan of reorganization in the Eastern District of Washington, the company announced on Monday. The first hearing is set for November 13, and company president Jacob Klinginsmith said on Tuesday at NBAA-BACE, “Since we filed the reorganization plan, which includes repaying all creditors in full, there have been no objections. I got an email from our attorney this morning. In the best-case scenario, we could emerge from Chapter 11 by the end of the year.”
Airworthiness Directives from the FAA and EASA issued in June grounded the fleet of 91 Atlas-equipped Citation CJ1s, CJ2s, and CJ3s. That ultimately led to the company filing for bankruptcy protection. The ADs were resolved in July following a factual review by the FAA, EASA, the NTSB, and the UK’s Air Accidents Investigation Branch (AAIB). Klinginsmith added, “In July, Tamarack received approval to accept a significant investment for ongoing operations; but the continued Active Winglets sales have allowed us to recover financially and ultimately to present a very strong plan of reorganization. The plan is a testament to the financial health and viability of Tamarack.”
Company founder and CEO Nick Guida said on Tuesday the company has been “operating normally” through the process and continues to take orders and install winglets. “We took 14 orders for winglets [so far] in 2019, and the 97th install is currently in process. We currently have about 5 percent market penetration, and there are 1,887 CJs flying."
Guida and Klinginsmith say their current plan is to continue to tell the story, correct false narratives, and rebuild the reputation of the company and the technology. “Our biggest proponents are our customers,” according to Guida.
He added that plans for the immediate future include adding new aircraft types to the stable of models eligible for Atlas active winglets, listing the Embraer Phenom 100, Citation XLS, Challenger 600-series, and Citation Mustang as possible candidates. “Our real goal,” Guida said, “is to get these winglets on airliners.”