The U.S. District Court for Eastern Washington has confirmed the plan for reorganization filed by Sandpoint-based Tamarack Aerospace Group Inc., allowing the company to start to emerge from its voluntary bankruptcy.

Jacob Klinginsmith, president of the aerospace manufacturing company, says, “We’ve been continuing to do sales and installations even while in bankruptcy, and that’s been the basis of our continued health and our ability to come out of bankruptcy.”

He adds, “Those sales are now allowing us to emerge from bankruptcy and having that plan approved is just one massive step in that direction.”

Tamarack makes and installs active winglets, which are designed to be attached to Cessna CitationJet wingtips to boost fuel efficiency by reducing drag and increasing lift.

The company already has written checks to vendors it was indebted to before filing for bankruptcy and is working through its plans of reorganization, Klinginsmith claims, though he says he’s uncertain how soon that plan will be completed.

“We still look to emerge from Chapter 11 relatively soon,” he says. “Of course, the pandemic puts a little bit of a shadow of question about the timing exactly, because we’re all just trying to understand what this means for our community and for our whole world.”

Tamarack still is receiving interest in its product, he adds, in particular in the business jet market as people look for ways to transport themselves outside of commercial flights.

The company installed its 100th winglet in February and has added four new partners to its installation and service network lineup, bringing its total to over 20 partners, Klinginsmith says.

Since late October, Tamarack has added six employees, bringing its total staff to 25, Klinginsmith says. The company still is looking to fill open positions but is taking a more measured approach to growth in light of recent developments, he adds.

Klinginsmith says the company saw a positive annual revenue for 2019, despite filing for bankruptcy. He says a conservative estimate for 2020 revenue is between $3 million and $4 million.

“The silver lining coming out of Chapter 11 is because we weathered the storm and came out on this side, we’ve been approached by many companies that are interested in doing projects with us,” he says.

Tamarack filed for Chapter 11 bankruptcy protection in late June, after the Federal Aviation Administration issued an airworthiness directive due to safety concerns, effectively grounding Textron Aviation-made Cessna CitationJets with Tamarack-manufactured active winglets installed.

The company began restructuring at the time and implemented cost-saving measures, including staff reductions, contracting out its engineering services, and subleasing a portion of its 14,000-square-foot facility at 2021 Industrial Drive, in Sandpoint.

In July, the FAA lifted the restrictions to the jets equipped with the winglets provided approved upgrades were installed. A month later, the company received court approval to accept nearly $2 million in committed debtor-in-possession financing, which provided a safety net for the company to continue operations.