An affiliate of a Canadian aerospace manufacturer has filed for bankruptcy protection for its longtime factory in Southwest Ohio, according to a local report.
Magellan Aerospace USA Inc. is seeking Chapter 11 protection for the Magellan plant in Middletown, the Journal-News reports. Documents filed with the court reportedly listed assets of $10 million to $50 million and liabilities of $50 million to $100 million.
The Chapter 11 process typically allows companies to continue operating their assets; the filing would reportedly authorize company officials to pursue a restructuring or reorganization, as well as a sale of the facility or liquidation, if necessary.
Magellan, based in suburban Toronto, makes complex assemblies and systems for aircraft manufacturers, engine makers and space agencies across the globe from production facilities in North America, Europe and India. The company says the Middletown plant manufactures high-temperature, vacuum-brazed honeycomb structures for exhaust systems and control surfaces and offers assembly of titanium- and nickel-based alloy components and aluminum structures.
The facility traces its roots to 1928, when a company eventually known as Aeronca was founded in Cincinnati; it moved to suburban Middletown following a 1937 flood, and was acquired by Magellan predecessor Fleet Aerospace 40 years ago.
Magellan officials indicated in a corporate resolution this month that bankruptcy would be in the best interests of the company along with those of its creditors, employees and other stakeholders. The Journal-News said that the company did not respond to multiple requests for comment.
