Dynamic Aerostructures’ chapter 11 cases have been dismissed following a completed section 363 sale of the operating business to FMI Holdco LLC, an Avem Partners affiliate. The sale closed on April 11, 2025, its proceeds repaid the debtor-in-possession financing in full, and the court dismissed the cases on September 3, 2025. The case therefore ended as a sale-and-dismissal restructuring rather than a plan process, with no remaining sale, financing, or confirmation milestone.
The aerospace-components manufacturer entered chapter 11 on February 25, 2025 through its voluntary petitionDkt. 1, after legacy quality-control problems generated remediation costs, material-price inflation compressed margins under predominantly fixed-price long-term customer contracts, and a major customer’s industry-wide stop-work order disrupted operations. Those pressures produced operating losses and defaults under the BMO Harris credit facility, which comprised a $39 million term loan and a $12.5 million revolver secured by substantially all assets; by the petition date, the debtor reported approximately $47.6 million of principal and $7.1 million of accrued interest outstanding. The resulting liquidity shortfall and lender acceleration left the company seeking court protection to preserve operations and execute a prearranged asset-sale path, as detailed in the first-day declarationDkt. 2.
Before filing, the debtor marketed the business through Configure Partners and selected FMI Holdco as stalking horse on a $16 million cash bid, subject to adjustments and assumed liabilities. Chapter 11 liquidity came from a committed $12.5 million senior secured priming DIP facility provided by CRG Financial, with $4 million available on an interim basis to fund payroll, essential operating costs, and the accelerated sale process. The proposed timetable called for an April 7 bid deadline, an April 9 auction, and an April 15 closing; the sale ultimately closed four days earlier. Completion of that transaction and repayment of the DIP eliminated the need for a standalone plan, and dismissal became the final case endpoint.
