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End-to-end solutions provider Impresa Aerospace has filed for bankruptcy protection in the US Bankruptcy Court in Wilmington, Delaware.
The company manufactures parts for Boeing 737 MAX airliners, which were grounded following two fatal crashes in Indonesia and Ethiopia that resulted in the deaths of 346 people.
Impresa relies heavily on the 737 MAX as its major source of revenue, reported the Wall Street Journal.
Private-equity firm Twin Haven Capital Partners, which is a majority owner of Impresa, revealed its plans to acquire the company out of bankruptcy for $10m.
According to the court papers filed by Impresa chief executive Steven Loye, it will proceed with the deal unless there is a better offer.
With the grounding of the 737 MAX, problems are spreading across the supply chain. This has left firms such as Impresa with commitments to purchase goods for the manufacturing of parts for Boeing, which is now manufacturing aircraft in small numbers during the pandemic, reported Wall Street Journal.
Earlier, a Boeing spokesman had said: “This is a challenging time for our entire industry, and we are working closely with all of our suppliers to manage through the unprecedented downturn, address hardships and manage risk during this time.”
Last week, the US House Committee on Transportation and Infrastructure released its final report on the Boeing 737 MAX aircraft detailed ‘serious flaws and missteps’ in the design development and approval of the 737 Max.
Late last month, Transport Canada successfully completed the validation testing activities of updated Boeing 737 MAX 8 aircraft while the EU Aviation Safety Agency (EASA) planned to commence flight tests back on 7 September.