Dynamic Aerostructures LLC, a major aerospace parts supplier to industry giants Lockheed Martin and Boeing, has filed for Chapter 11 bankruptcy protection, citing financial turbulence and manufacturing inconsistencies that disrupted its operations. The Los Angeles-based company, along with affiliates Dynamic Aerostructures Intermediate LLC and Forrest Machining LLC, reported debts ranging between $50 million and $100 million in a filing submitted Wednesday.
The bankruptcy move signals a critical moment for the company, which has long played a vital role in the aerospace supply chain but now faces a turbulent descent.
The Downward Spiral: Quality Control Woes and Stop-Work Orders
CEO Eric N. Ellis outlined the company’s struggles in a first-day declaration, revealing that persistent “manufacturing practice inconsistencies” led to legacy quality control issues. In an attempt to mitigate the damage, Dynamic Aerostructures self-reported the concerns to its clients and invested significant time and resources into rectifying them.
However, the fallout was immediate. Some major customers, including key defense contractors, responded with temporary stop-work orders. These interruptions proved devastating, slashing the company’s profit margins and further tightening its financial straits.
