Air Force One supplier GDC Technics LLC has filed for bankruptcy and warned that it would lay off more than 200 employees after Boeing Co. canceled its contracts, WSJ Pro reported. GDC, a Boeing subcontractor working on government executive fleets, filed for chapter 11 protection Monday in the U.S. Bankruptcy Court in San Antonio. The Fort Worth, Texas-based aerospace company valued both its assets and liabilities in the $10 million to $50 million range, according to court papers. The decision to file for bankruptcy comes after Boeing and GDC sued each other earlier this month over their business dealings in building two new Air Force One aircraft, which would be used to transport the U.S. president. Chicago-based Boeing filed a lawsuit against GDC on April 7 in Texas state court alleging that GDC was roughly a year behind schedule in completing interior work on the two presidential planes. The delays caused by missed deadlines allegedly resulted in millions of dollars in damages to Boeing and jeopardized work that is of critical importance to the U.S. Air Force and the president, the lawsuit said. Boeing, responsible for designing and manufacturing the military aircraft, hired GDC as a subcontractor to design and build the interiors of the planes. Boeing also hired GDC as a subcontractor on existing Air Force One aircraft to help refurbish the interiors. A Boeing spokeswoman said Tuesday that the company canceled the contracts with GDC earlier this month “due to their insolvency and failure to meet contractual obligations.” Boeing declined to comment on the bankruptcy filing.
