Capstone Partners’ Special Situations Investment Banking group advised CTL Aerospace, Inc. (CTL)—a manufacturer of composite parts serving aerospace and defense end markets—in its Chapter 11 Bankruptcy case and sale to an affiliate of Davidson Kempner Capital Management (DK). The transaction closed in March 2026.
CTL operates as a Tier 2 & 3 build-to-print manufacturer for large, blue-chip aerospace and defense customers. CTL has been a supplier to both the U.S. Government and major aerospace companies since 1946. CTL also provides maintenance, repair, and overhaul services for jet engine components and other aerospace parts. For more information, visit CTL here.
In 2024 and early 2025, CTL experienced significant manufacturing quality disruptions, which were resolved, but the resulting financial strain led to defaults under the Company’s credit agreement with its senior lender. With no viable alternatives to sustain operations and a rapidly deteriorating relationship with its lender, CTL filed for Chapter 11 in September 2025.
CTL retained Capstone shortly after its bankruptcy filing. Capstone’s services in this engagement included two separate teams: Capstone’s Special Situations Investment Banking team sourced debtor in possession financing and executed a sale of the business through the Chapter 11 process and Capstone’s Financial Advisory Services (FAS) team delivered comprehensive managerial, operation and financial and advisory services to support the company’s daily operating functions. Capstone’s Special Situations Investment Banking and FAS teams worked seamlessly together through the Chapter 11 bankruptcy process.
Capstone was head and shoulders above the other firms we talked to, and it was unanimous amongst the CTL leadership team as to our selection. Important factors in our selection included confidence, competence, honesty, accessibility, sincerity, and a proven track record. They listened as we told our story. Capstone realized we had a business worth saving and were up for the fight. We made the right choice. Capstone provided professionals in two work streams needed by the business. Capstone’s Special Situations Investment Banking team developed a go-to-market strategy both for our debtor in possession financing needs as well as a sale of business, and the Financial Advisory Services team created endless requested budgets, forecasts and regularly communicated with counsel. They did an excellent job in both camps. Our legal team and Capstone worked as a seamless unit which enabled CTL to fight a good fight even against daunting odds of the challenges faced.
“It was a great privilege to fight for a business with such dedicated management and employees. We’re proud to have supported CTL’s efforts to secure financing to operate “business as usual” in the Chapter 11 case and, ultimately, to sell the business to a well-capitalized and capable buyer,” said Geoffrey Frankel, Capstone’s head of Special Situation Investment Banking.
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Davidson Kempner Capital Management (DK) is a global investment firm with approximately ~$38 billion in assets under management across multiple funds and strategies. Backed by over 40 years of investment experience, DK invest across the capital structure in both public and private markets, including middle market aerospace and defense companies in the United States. DK applies their research-driven investment process to evaluate and execute a diverse range of transactions across asset classes, geographies and market cycles. In addition to CTL, DK’s A&D investments include The Atlas Group. For more information, visit DK here.
The investment banking professionals on Capstone’s Special Situations Investment Banking team offers a full range of services to companies and stakeholders facing capital structure challenges, including distressed M&A advisory, special situation/bankruptcy capital solutions, balance sheet restructurings, corporate divestitures and carve-outs, and evaluation of strategic alternatives. To learn more about this transaction, or about the benefits of starting a relationship with this team at Capstone, please contact our Special Situations Investment Banking team.
