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Noble Equity Holdings, LLC Files for Chapter 11 Bankruptcy Protection

Noble Equity Holdings, LLC filed for voluntary relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. The Boston-based defense contractor is seeking to preserve the value of its business while continuing to serve its customers without disruption. Tom Noble, the founder and Chief Executive Officer of Noble Equity Holdings, LLC, stated that the company was forced into bankruptcy due to significant headwinds, specifically a contract dispute with the Defense Logistics Agency. The agency shortened a critical weapons support contract from 10 years to 4 years, leaving the company with approximately $70 million to $100 million in inventory and related obligations. The company plans to use cash collateral from existing secured lenders to fund operations during the bankruptcy process. Noble Equity Holdings, LLC is evaluating strategic alternatives, including a sale of some or all of its assets or a plan of reorganization. The firm currently owes $255.6 million to lenders and approximately $250 million to vendors. The administration announced that the company is seeking a value-maximizing outcome for its stakeholders while pursuing several disputes tied to the contract, including a claim that it is owed about $86 million.

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