Gulfstream Aerospace has completed its acquisition of the Nordam nacelle line for the G500 and G600, ensuring a consistent production flow for its new aircraft lines and clearing the way for Nordam to exit Chapter 11 bankruptcy protection.

The companies, which announced the finalization yesterday, reached agreement for the proposed acquisition a month ago—after Nordam suspended production of the nacelle line in early July, citing “an impasse” with Pratt & Whitney Canada. The engine maker produces the PW800 variants powering the G500 and G600 and was the original contractor for the nacelles. Later in July, Nordam filed for Chapter 11 bankruptcy protection and P&WC agreed to assign the purchase agreement to Gulfstream, according to court documents.

Nacelle production restarted early in September under Gulfstream’s purview through a temporary agreement approved by the U.S. Bankruptcy Court for the District of Delaware. The court followed with final approval for the sale on September 26.

While terms of the acquisition were not disclosed, court documents specified that under the agreement Gulfstream would have “full management authority over the program, and, to the extent that [Gulfstream] elects, all shared assets and services used by Nordam both in the program and in other non-program operations,” such as personnel and equipment associated with the program, according to court documents. In exchange, Gulfstream would assume $18 million of “third-party vendor and contract counter-party liabilities.”

Manufacturing is remaining at Nordam’s facilities in Tulsa, Oklahoma, and Nordam CEO Meredith S. Madden said 117 workers have been assigned to the program. “Gulfstream is a great customer for Nordam,” Madden said. “Their decision to own and manage this work here at Nordam’s Nacelle & Thrust Reverser Systems facility shows confidence in our stakeholders and is a testament to our capabilities to produce this FAA-certified nacelle system, which has performed very well after more than 6,000 hours of flight tests.”

The arrangement enables Nordam to focus on its core business while delivering on the G500 and G600 program, Madden said. Pointing to Gulfstream’s 60-year production experience, Gulfstream president Mark Burns added, “The manufacturing of this component is firmly in our wheelhouse, especially since we also manufacture the wings and empennage for these aircraft.”

The restart was particularly critical for Gulfstream, which began deliveries of its ultra-long-range G500 last week and is closing in on certification for the G600.

As for Nordam, Madden reiterated that the primary issue leading to the Chapter 11 filing was the nacelle production. “Now that this agreement with Gulfstream is in place, that issue goes away. We see blue skies ahead as we aim to exit Chapter 11 by the end of the year.”