Defense industry manufacturer Channel Technologies Group LLC, which makes underwater navigation systems for the U.S. Navy and components for other defense contractors, filed for bankruptcy protection after losing more than $10 million this year on long-term contracts, the Wall Street Journal reported today. Lawyers who put the Santa Barbara, Calif., company into bankruptcy on Friday said they plan to look for buyers for its operations, which make ceramic parts sold to top defense contractors, energy firms and medical device manufacturers. Channel Technologies, which employs 224 workers, also makes sonar equipment and underwater navigation systems for the U.S. Navy. Channel Technologies officials blamed the company’s financial trouble on several long-term contracts that have underpriced the company’s work and, in some cases, include ambiguous language that have led to delays and unexpected costs. The contract problems will cause the company to lose $11.6 million this year, they estimated in court papers.
