One of my many roles is Vice President of Manufacturing, Facilities, and Program Management at CTL Aerospace. At Senator George Lang’s fundraiser on November 1st, 2025, everyone I spoke with was primarily interested in an update on the Chapter 11 filing for the company.  After all, it wasn’t that long ago when Vivek Ramaswamy came to CTL to announce his run for Governor, so there were lots of people cheering that the company would find a way through to the other side of a challenging financial situation.  And to make matters worse, our case was not one of not having customers or income, but rather part of a widespread suppression campaign by our bank that many privately owned Tier 2 suppliers have experienced over the last decade.  Only in the case of CTL Aerospace, the ownership has shown a very rigorous desire to hold ownership rather than to be pushed aside, essentially by pirates who just wanted to raid our ship and steal all the plunder for a quick flip on the market, as a turn and burn, as they like to say.  The context and legal positioning regarding CTL Aerospace’s Chapter 11 proceedings, specifically the compelling basis for equitable subordination under 11 U.S.C. §510(c). The facts of our case, supported by documented creditor misconduct and predatory financial behavior, are now a very public matter, so the personalities involved are in the public record. 

CTL Aerospace—a 79-year-old aerospace manufacturer—has faced targeted financial suppression during a period of global supply chain instability. The aggressor in this case refused to extend forbearance, coupled with abrupt covenant enforcement and term manipulation, directly impaired our ability to procure raw materials and maintain operational continuity, resulting in massive damages for which everyone in the crowd I was speaking with was very interested. These actions were timed to coincide with industry-wide distress and reflect a pattern of bad faith and strategic impairment.  And the target against us was the “goodwill” of our business, the brand that we had built over a long period of time, the intangibles that are often overlooked in modern business because nobody prosecutes those kinds of cases anymore.  Even though they certainly should and would otherwise if the costs weren’t so prohibitively high.  Once you get into something like this, you see a real menace to the infrastructure of America that is determined to erode our manufacturing base by international banks, who, just like pirates, are seeking short-term plunder and quick sales on the hedge fund market.  When you attack a company’s “goodwill” through purposeful suppression techniques, which a bank can do since it is the mechanism through which all cash for a company flows, if it breaches that fiduciary trust, it can really wreck a business.  And as I found out during this process, it’s not just CTL Aerospace going through this kind of thing, but it’s common in the nation right now, as many private owners we know closely have had to step out of the game and get into the name change cycle every few years, which has caused all kinds of supply chain instability.  Again, much of this is now public record, and people have been following the case. They wanted me to provide an undercover perspective, as this is a very political problem, a matter of national security, which is undoubtedly the case at CTL Aerospace.

Case law supports our position, which is to fight back and seek damages for the massive financial impact on our company’s goodwill. In Citicorp Venture Capital, Ltd. v. Committee of Creditors Holding Unsecured Claims (In re Papercraft Corp.), 211 B.R. 813 (W.D. Pa. 1997), the court subordinated a creditor’s claim due to inequitable conduct that harmed other creditors and the debtor’s reorganization prospects. Similarly, In re Fabricators, Inc., 926 F.2d 1458 (5th Cir. 1991), emphasized that insider status and control over the debtor’s financial decisions can trigger subordination when used to the detriment of the estate.  And that was certainly the case at CTL Aerospace in really extraordinary ways.  But often, such defenses are never applied because by the time you go through the Chapter 11 process, a company doesn’t have the money to fight, which means you essentially have to hire $3000 per hour lawyers to run the case.  Because the banks certainly have those types on their side. In this case, the conduct—potentially documented in internal communications and covenant enforcement timelines—suggests a deliberate strategy to induce distress and position itself for asset acquisition or impairment accounting. We are actively pursuing discovery to uncover these records and may seek engagement with the DOJ or OCC for a lender liability review.  And based on the evidence we have and the timeline, which many have told us from an insider perspective is a classic case of “The Playbook,” would be an easy case to prosecute.  And likely a large settlement.  But that’s not where my mind is, or some of the people involved in this with me.  We want to see much deeper punishment for the entire financial industry, because this hasn’t just happened to us.  It’s a significant impediment to the economic backbone of the entire American manufacturing industry.  It’s not enough for us to survive, which we look poised to do.  However, to illustrate what was done. 

I explained it like this to many people at the fundraiser, and it was good to chat with Senator Bernie Moreno, who is doing a great job in D.C., and Congressman Warren Davidson who has been fantastic over the role of the Fed in government and is very cerebral in problem resolution, imagine you are a big deer with a full rack of antlers, a 10 pointer.  You have lived a long time, and it shows in the development of your antlers.  But one unfortunate day, you try to cross a road and you get hit by a car, breaking your hip or leg.  The driver keeps going.  You are lying there helpless.  Then a cringy pick-up truck comes along with a very loathsome character getting out, who sees an opportunity for a free mount on his cabin wall to brag about.  He sees the big deer with the whole rack and thinks it’s an excellent opportunity to kill the deer and hang the head on his wall for bragging rights.  He didn’t do the work of hunting the deer, but nobody will ever know.  Typically, in a business cycle, the deer would find a way to crawl away into the woods to heal and restore itself to life after such an accident.  In CTL’s business, a global supply chain issue put us under significant stress.  However, rather than helping CTL, the bank adopted a suppression strategy, essentially running the deer over with a car so they could hang the easy kill on their portfolio management wall for bragging rights and a path to easy money.  And from my perspective, based on the evidence, there is a prominent political position in all this, too, a hatred for the Trump administration and this notion of Making America Great Again.  Patriotic companies like CTL Aerospace, which are privately owned and conduct a significant amount of defense work, are prime targets.  They are the 10-point bucks that would look great on a very progressive trophy wall for financial institutions.  However, the facts of the case are sufficient.  It was a sloppy case on the opposition’s part; they made numerous mistakes that they thought they could hide behind expensive lawyers.  But the case law certainly doesn’t favor them. 

When everyone asked me what needs to happen in this case, I gave my point of view, which is prosecution on equitable subordination under 11 U.S.C. §510(c).  The attacker is demoted from a secured creditor, and their impairment play is wrapped up in a case law lesson.  However, the issue would have to be taken out of their control, as they currently hold a monopoly status in the courts and the financial mechanism.  At the very least, this is a case of predatory accounting that should serve as a cautionary lesson for similar cases.  And as long as it’s going on, it violates any notion that Ohio, or America, can sustain new business activity when these practices are hindering the behavior.  It’s a significant threat to our economy and national security.  Over the course of the last year, we spoke to a lot of people to get involved, and once they realized that CTL was in the squeeze play, they didn’t want to get wrapped up in the whole effort for fear of being sucked in themselves.  Like the deer example, they felt sorry for the deer but didn’t dare to help, fearing they would be poached themselves. 

I told the same story over and over, but it has a lot of details, so I wrote it down here, as most of the attendees are very interested in the topics I discuss.  This financial behavior is actually part of a larger collapse of political and social order that is occurring in most industries. This lack of respect for goodwill, for instance, is precisely why the Disney Company is struggling these days, as it owns intangibles such as movie rights, brand names, and amusement parks.  But they have, through woke corporate practices, destroyed the “goodwill” of the company that Uncle Walt built, and people wanted to be associated with.  Hedge fund people think in terms of tangibles, such as the head of a 10-point buck on their wall to brag about.  However, what truly adds value to the marketplace is the intangible of “goodwill.”  And that’s what the fight at CTL Aerospace is really about, and why so many people were interested in an update.  Most of these tier 2 companies don’t put up much of a fight.  Once wounded, they sell off to make the pain end as quickly as possible.  And that is what the opposition thought was going to happen here.  Only it didn’t, and the stand and fight part was not something they were quite ready for.  And that’s where the case is as of now. Significant reforms to the finance industry are needed, as this is certainly not the only example.  And suppose we really want to make America Great Again. In that case, we need to punish these predatory practices of fiduciary terrorism through “goodwill” destruction because it’s a real problem for virtually everyone whose lives are touched in terrifying ways by it.

Rich Hoffman

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