Boeing Parts Maker’s Ex-Owner Gets Escrowed Funds, but Not Fees

The former owners of Boeing Co. parts supplier ZTM Inc. aren’t liable to its private equity buyers for Boeing’s failure to renew certain subcontracts, a Delaware Chancery Court judge ruled. But the buyers are off the hook for holding onto escrowed funds pending litigation, the judge said.

ZTM was acquired for $80 million in 2016 by Accurus Aerospace Corp., a holding company owned by Liberty Hall Capital Partners LP. About two-thirds of the parts maker’s revenues came through Boeing.

Boeing and ZTM routinely revised their long-term “master contract” whenever ZTM successfully bid to make a certain component, or whenever one ...