As noted in the Naples Daily News, Shaw Aero Devices declared Chapter 11. This does not effect Shaw Aero Development and we are assured by the Shaw companies will not have an impact on production, deliveries or commissions.


Business front | Business archive | helpNaples-based Shaw files Chapter 11 for two of its divisions Tuesday, October 2, 2001 By LAURA LAYDEN, lllayden@naplesnews.com After receiving recognition for its many successes from Gov. Jeb Bush two weeks ago, Naples-based Shaw Companies has filed for Chapter 11 bankruptcy to reorganize two of its companies. Shaw Aero Devices Inc., a manufacturer of components for aircraft, and Shaw Aero Realty Corporation, which controls the real estate holdings of Shaw Companies, submitted petitions to the U.S. Bankruptcy Court for the Middle District of Florida on Sept. 27. This comes on the heels of an awards ceremony held Sept. 17 to honor Shaw Companies and eight other companies in the state for their growth and excellence in business and corporate citizenship. The award was part of the 18th-annual Industry Appreciation Week Celebration. Shaw Companies, a family- owned company that produces small aircraft and trucking parts, will continue running the two businesses that have filed for Chapter 11 bankruptcy, and "operations will continue as usual," said Shaw Aero President Robert D. Patton in a company news release. Shaw Aero Development Inc., a supplier of fuel, oil and expandable rubber plugs to the off-road vehicle and trucking industries, and Dyna Air Inc., which also manufactures airplane components, are not involved in the filing, which company officials say was needed because AmSouth Bank wanted to end financial agreements it had with Shaw Companies. "AmSouth had a standing decision to terminate its relationship with Shaw even though the companies are and have always been current with the bank," Patton said in a written statement. "Consequently, Shaw was in the process of establishing a new banking relationship. The horrific terrorist attacks on the World Trade Center and the Pentagon on Sept. 11 disrupted the planned bank financing, as Shaw is primarily an aerospace company. Following this disruption, AmSouth refused to reasonably extend or to renegotiate its financing with Shaw, making the Chapter 11 filing essential." Shaw Companies had mortgage, working capital and line of credit agreements with AmSouth. "They were our complete banking partner for Shaw Aero Devices and Shaw Aero Realty," said Michael Dill, vice president of operations. "They were our banking solution." As a result of the terrorist attacks, the bank Shaw Companies was working with to replace AmSouth put a moratorium on lending. Shaw Companies then tried to renegotiate its deal with AmSouth, but the terms were so harsh that the company opted to file for bankruptcy protection. There are hopes that the company can still work out an agreement with AmSouth. "We are not a Chapter 11 company," Dill said. "Ironically, we are on pace to have the strongest year in our company's history. We will come out of this ... very quickly." The filing will protect Shaw Companies from any claims made by AmSouth, and will give it time to get a new lender in place so it can meet its financial obligations. "We are completely committed to paying off our vendors, and they know that," Dill said. The company has more than $30 million in orders, and it will make good on those orders, he said. The Shaw Companies make products for more than 270 aircraft. Shaw Aero Devices is the sole manufacturer for components for F-16s, F-18s, F-22s, and B-1 and B-2 Bombers, Cobra helicopters and other military aircraft. Despite the filing, company officials expect to "continue to offer the same high quality products that have made us a respected industry leader," Patton said. Shaw Companies is the first Collier County company to receive the Governor's Leadership Award since 1994. The award recognizes Florida businesses for their growth, and excellence in business and corporate citizenship. Judges look at such factors as employment growth, capital investment and civic contributions. Asked recently how he felt about receiving the governor's award, James Shaw, president of the company, said: "We're very proud of the company and the people involved with it." Shaw Companies was founded by James' father Francis, who incorporated Shaw Metal Products in Garden City Park, N.Y. in 1944. The company was established as a machine shop for the aircraft industry, and by the mid-1950s it had more than 100 employees. In 1954, Shaw Aero Devices and Shaw Aero Development were founded. Shaw Aero Development relocated to Florida in 1980 and Shaw Aero in 1993. The first offices were in Fort Myers, and had 125 employees. In 1999, the company built a new headquarters at the White Lake Corporate Park near Exit 15 off Interstate 75 in Naples.