Tamarack secures funding to continue operation
Tamarack Aerospace Group, producer of an active winglet system for Cessna Citation jets, announced Aug. 9 that the firm has secured financing to continue operation during bankruptcy.
The firm based in Sandpoint, Idaho, filed for Chapter 11 bankruptcy protection in June, soon after the FAA and European regulators grounded all 91 Citation jets equipped with the firm’s active load alleviation system (ATLAS) winglet system in response to concerns about potential loss of control resulting from loose screws short-circuiting the module that controls an aileron-like control surface on the outboard end of the wing.
Tamarack announced Aug. 9 that the bankruptcy court has authorized $1.95 million in debtor-in-possession financing from a consortium of investors including existing customers, vendors, and other stakeholders.
“In a matter of a few days, these supporters stepped forward enthusiastically to participate in this opportunity,” said Tamarack President Jacob Klinginsmith, in a news release. “They understand our industry and believe in the long-term value of our innovative Active Winglet product. This financing from friendly investors is now the only debt secured by our IP and is an important step in our reorganization, which allows us to continue serving our expanding fleet.”
Klinginsmith added that “several” new installations are scheduled or in process, and predicted the firm will enjoy “a good second half of the year.”
The patented ATLAS system is designed to operate autonomously, with the control surface balancing wing loads created by the winglet, which increases aerodynamic efficiency. Benefits to operators include increased performance and fuel efficiency.
