Case timeline

1. Jul 222026
   Financing: Magellan Aerospace Middletown files Chapter 11

   Whatnow reported that Magellan Aerospace, Middletown, Inc., the Ohio subsidiary of Canadian parent Magellan Aerospace Corporation, filed Chapter 11 in the Southern District of Ohio. The voluntary petition estimates $10 million–$50 million of assets and $50 million–$100 million of liabilities. The debtor owes Magellan Aerospace USA more than $80 million in unsecured intercompany loans, plus approximately $1.8 million to suppliers, $450,000 to employees and $500,000 to its retiree medical plan.

   The first-day declaration attributes the filing to declining legacy aerospace programs and environmental obligations, including estimated Torrance remediation costs of $25 million–$64 million and San Diego investigation and feasibility costs exceeding $12 million. The 109-employee manufacturer lost $8.5 million on $26.3 million of 2025 revenue. Management plans to begin marketing within one week and select between a standalone reorganization and a Section 363 sale within two to four weeks. Magellan USA proposed $20 million of new-money DIP availability, with $2 million at the interim stage and a 3:1 roll-up upon final approval, making parent control and the approaching strategic decision the immediate case focus.

   Sources and provenanceJuly 22, 2026
2. Jul 23
   Hearings: Court approves $2 million interim DIP; $60 million roll-up deferred

   Following the July 23 first-day hearing, Magellan Aerospace, Middletown can draw up to $2 million from affiliate and prepetition creditor Magellan Aerospace USA under the interim DIP order. The court granted the lender superpriority administrative status and perfected DIP liens, with borrowings restricted by the approved budget and its permitted-variance covenant.

   The larger capital-structure issue remains open. The DIP financing motion seeks as much as $20 million of new money plus a 3:1 roll-up of insider prepetition loans capped at $60 million. No roll-up became effective at the interim stage. Objections to final approval are due August 12 at 4:00 p.m. ET, ahead of an August 18 final hearing. Parties also retain 60 days after committee formation—or 75 days after the petition if no committee forms—to challenge the debtor’s stipulations concerning the prepetition loans. The deferred roll-up and challenge window make creditor participation before the final hearing consequential.

   Sources and provenanceJuly 23, 2026
3. Jul 22
   Petition: Magellan Aerospace’s Ohio manufacturing unit enters Chapter 11