After 97 years: Aviation giant files for bankruptcy following massive debts
End of an era in the aviation world: The successful company that manufactured heat shields for NASA and built systems for Boeing and Airbus has filed for bankruptcy protection due to massive debts and consecutive contract cancellations.
The veteran aerospace component manufacturer Magellan Aerospace Middletown, which has been operating for 97 years, recently filed for bankruptcy protection under Chapter 11 due to heavy debts and significant contract cancellations.
The company, based in Ohio and a subsidiary of the Canadian Magellan Aerospace (which is not included in the proceedings), reported to the court unsecured debt totaling over $82 million. This is compared to assets whose estimated value ranges between only $10 million and $50 million.
The current crisis stemmed directly from shifts in the commercial aviation industry. For years, the company relied on major contracts to produce exhaust systems for wide-body aircraft from Airbus (A340 and A380 models) and Boeing (747 and 767). With the cessation of production for these models, the company experienced a wave of contract cancellations that led to a sharp and continuous decline in its revenues since 2020. In 2025 alone, the company recorded a net loss of $8.5 million.
This is a company with a rich history. It was founded in 1928 as the "Aeronautical Corporation of America" by Robert Taft, the son of a former US president. In the 1930s, it led the production of light aircraft in the US, and later even produced heat shields for NASA's "Apollo" programs and space shuttles. Now, the company hopes to use the bankruptcy process to stabilize its financial situation, reorganize its business, and avoid total collapse.
