Tamarack Aerospace has exited Chapter 11 bankruptcy reorganization a little more than two years after the active winglet developer entered the legal proceeding. The Sandpoint, Idaho company said a final decree by the U.S. Bankruptcy Court for the Eastern District of Washington ends its voluntary bankruptcy, which was spurred by the two-month-long grounding in the U.S. of 91 privately owned Cessna Citation jets equipped with its active winglets.
Tamarack announced its voluntary bankruptcy filing on June 7, 2019, following airworthiness directives (ADs) from the FAA and European Union Aviation Safety Agency (EASA) that grounded Cessna CitationJets, CJ1s, CJ2s, and CJ3s equipped with its active load-alleviation system (Atlas) winglets. A month later, EASA lifted its AD, an action that was followed by an FAA alternative method of compliance.
After its Chapter 11 declaration, Tamarack received $1.95 million in funding from a group of existing customers and vendors that supported its reorganization. While the grounding forced Tamarack to temporarily reduce its workforce, its continued operation allowed the company to return to growth and eventually double its workforce. It has expanded its facilities and operations—including the addition of remote installation centers in South Carolina and England—and increased the number of active winglet installations to more than 140. It also has 20 authorized service centers operating internationally.
Tamarack is looking to expand further by adding its active winglets to other business jet types, as well as commercial and military applications.
“We are relieved that these bankruptcy proceedings are in our rearview mirror,” said Tamarack president Jacob Klinginsmith. “The final results, allowing us to support our fleet and to reorganize and repay creditors, validate our decision to voluntarily seek Chapter 11 protection. It’s very gratifying to see our investors, older customers, and new customers have the faith in our technology and business model to support us during this bankruptcy test, and now Tamarack is set to grow.”