Delaware judge approves Boeing's purchase of TECT Aerospace in Wellington for $19.8 million
TECT Aerospace in Kansas, an aerospace supply company with a plant in Wellington, filed for Chapter 11 bankruptcy in early April.
Now, after an auction bid worth $19.84 million, Boeing Co. will acquire the aerospace company.
Boeing offered to pay $13.5 million in secured debt forgiveness, plus a $5.84 million creation fund to cover assumed liabilities and $500,00 in cash.
The agreement was filed on Friday, July 2 but the sale was approved on Tuesday, July 12 by a Deleware judge.
TECT Aerospace is considered one of Wellington's biggest employers. Wellington has been a city known for aircraft parts plants due to its proximity to Wichita, the Air Capital of the World.
The employees are expected to meet with Boeing representatives as soon as Wednesday.
Boeing manufactures doors, wings, flight controls, landing gear, cockpits, and other civilian and military aircraft parts.
Originally, TECT has struck an agreement with NWI Aersostructures LLC. However, Boeing provided TECT with $60 million in debtor-in-possession financing.
TECT owed nearly $18.3 million to Boeing and $4.2 to Spirit AeroSystems. This led to Spirit suing TECT last summer.