SANDPOINT — Tamarack Aerospace Group is voluntarily filing for bankruptcy as a direct result of airworthiness directives from federal and European aviation regulators.

The bankruptcy petition was filed by Tamarack Chief Financial Officer Rick Shanyfelt in U.S. District Court in eastern Washington on June 1, federal court records show. The Sandpoint-based manufacturer is seeking protection under Chapter 11 of the U.S. Code, which allows companies to remain in control of business operations although they are subject to the court’s oversight and jurisdiction.

A resolution authorizing the bankruptcy filing was approved by a majority of the members of the company’s board of directors on May 31.

It states the company is “directed to initially seek relief from mounting claims and significant potential litigation while the company evaluates options short of ultimate liquidation and pursues regulatory relief, mitigation of claim exposure, preservation of assets and ongoing business opportunities, as well as the potential for future job creation.”

The company, which has up to 200 creditors, listed assets and liabilities in the $10-50 million range.

The filing comes in the slipstream of an airworthiness directive from the European Union Aviation Safety Agency in April and a similar directive issued by the Federal Aviation Administration on May 24. The directives effectively grounded Cessna 525-series aircraft equipped with Tamarack’s active load alleviation system, also known as ATLAS, which improves climb capability and fuel efficiency by reducing drag.

The system is composed of wing extensions with upturned winglets and additional flight-control surfaces.

The airworthiness directives came amid a National Transportation Safety Board investigation into 2018 crash in Indiana which killed three people.

Tamarack released a statement to Aviation International News Online indicating that the bankruptcy filing is a direct result of the airworthiness directives, which prohibit Cessnas fitted with ATLAS from being flown.

“The decision to enter Chapter 11 allows Tamarack to continue to operate and focus all activities on supporting the ATLAS winglet customers to support EASA and FAA as they consider the proposal for lifting the restrictions imposed by the ADs,” the statement said.

The statement also added that Tamarack expects its bankruptcy to be a “temporary state.”

The EU directive included a mitigation path that kept Citation jets with ATLAS in the air, while the FAA directive did not.

Tamarack told AIN Online it continues to provide two key upgrades free of charge to customer aircraft to resolve control issues. One upgrade involves replacing a screw inside the Tamarack Active Camber Surfaces actuator and the involves the installation of aerodynamic centering strips on those surfaces.

According to Tamarack, 73 percent of the installed fleet have been upgraded.

“Tamarack is committed to the safety of our fleet and our customers. We feel we’ve been proactive in reaching out to make sure our customers have the latest, best, and safest product, and well continue to work closely with authorities to lift the restrictions on the fleet,” Jacob Klingsmith, Tamarack’s vice president and chief engineer, told AIN Online.

Keith Kinnaird can be reached by email at kkinnaird@bonnercountydailybee.com and follow him on Twitter @KeithDailyBee.