Capstone Partners’ Financial Advisory Services (FAS) team provided restructuring advisory services to CTL Aerospace, Inc. (CTL)— a manufacturer of composite parts serving aerospace and defense end markets—during its Chapter 11 Bankruptcy process.
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 US Government and major aerospace companies since 1946. CTL also provides maintenance, repair, and overhaul (MRO) 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 support in this engagement included two separate teams, the first being Capstone’s Financial Advisory Services (FAS) Team to develop and deliver comprehensive managerial, operational and financial services to support CTL’s daily functions. The FAS team identified and delivered operational efficiencies, while maintaining financial and accounting reports, managing operating and restructuring budgets, and regularly meeting and advising the executive team while also coordinating with bankruptcy counsel. CTL also retained Capstone’s Special Situations Investment Banking (SSIB) Team to source debtor-in-possession (DIP) financing and to execute a sale of the business. Capstone’s FAS and SSIB teams worked seamlessly together through the Chapter 11 bankruptcy process.
CTL Aerospace took an unplanned protective step to keep the doors open by filing Chapter 11 Bankruptcy. 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. 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.
“CTL at its core was a solid business with blue chip customers who was still recovering from a major raw material disruption. From Day 1 going onsite, it was apparent to Capstone that this veteran founded company, whose origins trace back to the Apollo space program, was worthy of all efforts to ensure its continued existence. The Chapter 11 process allowed for a time-out and enabled CTL to run a fulsome sale process and find a well-suited and strongly capitalized owner in DK. The entire CTL team, including Scott Crislip (President) and John Irwin (Chairman), Pat Friesenger’s of Coolidge Wall (Debtor’s Counsel) and the many great operational and engineering VPs at the company, deserve full credit for their perseverance, faith and tenacity,” said David Rychalsky, Managing Director at Capstone that led the FAS engagement.
The FAS team quickly became part of the CTL culture. The on-site FAS team met daily with CTL and after the bankruptcy proceedings, aided the company with a successful transition to creating a stronger company, with a solid path forward. Following a robust transaction process, Capstone’s Special Situations Investment Banking team identified an ideal buyer with extensive industry experience, Davidson Kempner Capital Management.
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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.
Capstone’s Financial Advisory Services (FAS) Team has an extensive array of advisory services that support the full business lifecycle and help owners, operators, and investors preserve, create, and accelerate value. The FAS team provides financial advisory, restructuring, operational turnaround, disputes consulting, valuation, and financial diligence services at every stage of a middle-market company’s life cycle. The FAS team provides tailored corporate financial advisory for companies, investors, and creditors across a broad range of industries. To learn more about this engagement, or how we can help your business grow and thrive, please contact our FAS team.
