Sandpoint, Idaho-based Tamarack Aerospace Group Inc. has filed a reorganization plan that, if approved, brings the company closer to emerging from Chapter 11 reorganization through the U.S. Bankruptcy Court.

Jacob Klinginsmith, president of the aerospace manufacturing company, says that the filing includes a plan to repay creditors in full, which he says likely will aid the approval process.

He adds that the company has continued to sell the active winglets, putting the company in a position to repay its debt.

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 has sold and installed 14 winglets this year, which Klinginsmith contends is a light workload for Tamarack, but enough to sustain operations. He adds that there are 96 jets with active winglets installed, with the 97th installation underway.

Tamarack also has begun to rebuild its staff, he says, particularly its engineering services team. The company currently has 19 employees and anticipates hiring two engineers and a salesperson, Klinginsmith says.

He adds that Tamarack is in a position to begin designing winglets for other models of airplanes, which could start in the first quarter of 2020.

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 a fleet of 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 to outside companies, and subleasing out a portion of its 14,000-square-foot facility at 2021 Industrial Drive, in Sandpoint. 

In July, the FAA lifted the restrictions on the jets equipped with the winglets under a provision requiring that approved system improvements be installed.

In August, the company received approval to accept nearly $2 million in committed debtor-in-possession financing. That funding provided a safety net for the company to continue operations, Klinginsmith says.

Klinginsmith says the next step will be to request court approval of a disclosure statement, a hearing for which is scheduled for Oct. 31 in Eastern District of Washington. He anticipates having the reorganization plan confirmed either late this year or early next year.