Nordam Files for Bankruptcy, Citing Pratt & Whitney Dispute (1)

Nordam Co. sought Chapter 11 after having to absorb “substantial non-recurring expenses in connection with a long-term contract with Pratt & Whitney Canada that has materially jeopardized” its profitability.

The petition listed $500 million to $1 billion in assets and $100 million to $500 million in debts.

Costs under P&WC contract have exceeded $200 million, and P&WC has damage claims against Nordam which it disputes, the company said in court filings.

It sought to achieve a resolution with bankers and PW&C before filing, but couldn’t, Chief Restructuring Officer John C. DiDonato, who also is managing director at Huron Consulting Services ...