Air Force One supplier GDC Technics files for bankruptcy
Air Force One supplier GDC Technics LLC has filed for bankruptcy and warned it would lay off more than 200 employees after Boeing Co. canceled contracts.
GDC, a Boeing subcontractor working on government executive fleets, filed for Chapter 11 protection in U.S. bankruptcy court in San Antonio on Monday. The Fort Worth, Texas-based aerospace company has valued both its assets and liabilities at a range of $ 10 million to $ 50 million, according to court documents.
The decision to file for bankruptcy comes after Boeing and GDC continued earlier this month over their business relationship in building two new Air Force One jets, which would be used to transport the U.S. president.
Chicago-based Boeing filed a lawsuit against GDC on April 7 in Texas state court, alleging that GDC was about a year late in completing interior work on the two presidential jets. Delays caused by not meeting deadlines would have resulted in millions of dollars in damages for Boeing and compromised work of critical importance to the US Air Force and the president, according to the lawsuit.
Boeing, responsible for the design and manufacture of military aircraft, hired GDC as a subcontractor to design and build the interiors of the aircraft. Boeing also hired GDC as a subcontractor on existing Air Force One planes to help renovate the interiors.