Partner Mark Liscio Discusses Financial Struggles of Defense Contractors in The Wall Street Journal
The Wall Street Journal reports that defense contractor Alion Science and Technology has reached a preliminary deal with creditors to push out the maturity of approximately $350 million of bonds coming due next year. This deal is in response to an opinion from the company’s auditor, which suggests that the company is close to bankruptcy. Alion and other defense contractors have been suffering financially as of late due to government spending cuts.
According to Kaye Scholer Partner Mark Liscio, Co-Chair of the firm’s Bankruptcy & Restructuring Department, “Small- and medium-sized defense companies like Alion have been hurt as a surge in overseas conflicts in the last decade ebbs and as across-the-board budget cuts known as the sequester kick in.”