Bank Defaults and a Race Against the Clock
The company’s financial troubles escalated when its prepetition lender, BMO Harris Bank NA, issued default notices in late 2023 and again in April 2024. The notices pointed to violations of a $51.5 million prepetition credit agreement, originally signed in July 2021, due to missed interest payments and other financial breaches.
Faced with dwindling cash flow and mounting pressure from creditors, Dynamic Aerostructures began actively marketing its assets in May 2024. The company aims to secure a winning bidder by mid-April, marking a desperate push to salvage its operations through a sale.
Revenue Holds, But Uncertainty Looms
Despite its financial woes, Dynamic Aerostructures generated over $51 million in revenue in 2023 and slightly surpassed that figure in 2024. Yet, even with steady revenue, the weight of operational missteps, customer concerns, and creditor demands proved too heavy to sustain.
Founded in 1978, the company has long been a trusted manufacturer of aerospace and defense components. Now under the ownership of private equity firm Endeavour Capital, it finds itself battling for survival.
