The privately-held Amfuel (American Fuel Cell) Company has filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Northern District of Texas (Fort Worth Division). The case was filed Sunday, Nov. 26, under Judge Mark X. Mullin.
The fuel cell and coated fabrics maker’s home office is located in Wichita Falls, Texas, but the comnay also has a facility in Magnolia which, as of September, employs around 125 people. The company is headed by Leonard J. Annalor as C.E.O. and represented by J. Robert Forshey of Forshey & Prostok as counsel. According to documents filed with the court, the company has been a U.S. government contractor for over 70 years and provides its products to the commercial market as well. Amfuel is one of only five domestic-based companies that manufactures fuel cells in significant quantities for the U.S. Department of Defense (DOD).
The company says in its filing that it has taken steps to streamline its operations and increase profitability. The filing also says that the company has been unable to successfully reduce costs and restructure finances. The company filed Chapter 11 to expedite its reorganization process and believes that investment by certain insiders may be the best means of completing a restructuring. Amfuel indicates estimated assets and liabilities of $1 to $10 million. Amfuel is indebted to over 200 separate parties including JEVAC Machine Inc. of Columbia County, as well as the county itself with over $23,000 in delinquent property taxes, and multiple other area creditors.
On September 27, Amfuel of Magnolia was awarded a multi-million dollar contract with the United States Air Force and DOD to manufacture fuel cell bladders for the Lockheed C-130 aircraft.
The deal was a $10,216,940 fixed-price contract for a “five-year, indefinite-delivery/indefinite-quantity” with no options, according the government documentation.
Including its Texas workers, Amfuel employs 243 people. The company is planning to remain operational while it restructures, according to bankruptcy documents filed in Texas.