Star Dynamics Corp., an Ohio defense contractor that has been embroiled in a legal battle with a BAE Systems PLC subsidiary for the last year, has filed for chapter 11 protection with a plan to sell its assets, Dow Jones Newswires reported yesterday. The company said in court documents filed on Tuesday that in July 2013, a state court issued an interim injunction preventing it from bidding on certain contracts identified by BAE and from developing a radar system. BAE had alleged "misappropriation of secrets," but most of the proceedings aren't public due to the nature of Star's and BAE's businesses. Although the order hasn't become final and Star said that it is objecting, the fight has drained resources during a time of industry-wide plight caused by cuts to federal spending. With more than $50.9 million in debt, Star decided that a bankruptcy sale of its assets was the best option.
