Dynamic Aerostructures LLC, a manufacturer of components for aerospace and defense contractors, has filed for Chapter 11 bankruptcy protection in Delaware and is seeking court approval for bidding procedures to sell substantially all of its assets, according to court documents filed on February 26.
The Valencia, California-based company has secured a stalking horse bid of $16 million from FMI Holdco LLC, an entity formed by private equity firm Avem Partners, which specializes in investments in aerospace and industrial companies across North America. The purchase price includes the cash component subject to working capital adjustments and assumption of certain liabilities.
Court filings show Dynamic Aerostructures and its affiliated debtors operate one of the largest independent aerospace and defense manufacturing sites in North America, spanning 226,000 square feet across two facilities in Southern California. The company supplies critical structural components and assemblies to major defense contractors including Lockheed Martin, Northrop Grumman, and Boeing.
The proposed bidding procedures outline a timeline that would conclude the sale process in approximately six weeks, with a bid deadline of April 7, an auction if necessary on April 9, and a sale hearing scheduled for April 11. The proposed sale consummation date is April 15.
"The timeline set forth in the Bidding Procedures is reasonable under the circumstances of these chapter 11 cases and is necessary to preserve the Debtors' business as a going concern and maximize recoveries in these cases," the company stated in its filing with the U.S. Bankruptcy Court for the District of Delaware.
The bankruptcy filing follows an extensive prepetition marketing process that began in May 2024, when the company's investment banker, Configure Partners, contacted 73 potential strategic and financial parties. According to court documents, 45 parties executed non-disclosure agreements and nine ultimately submitted proposals.
The stalking horse agreement includes bid protections consisting of a breakup fee of $400,000 (approximately 2.5% of the cash purchase price) and expense reimbursement of up to $250,000.
The case is being heard in the U.S. Bankruptcy Court for the District of Delaware (Case No. 25-10292-LSS). The debtors are represented by proposed co-counsel Ropes & Gray LLP and Chipman Brown Cicero & Cole LLP.
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View the complete 166-page Debtors' Motion for Bidding Procedures and Sale