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.