Bankrupt Defense Firm Can Resume Some Production

A federal bankruptcy judge Tuesday approved a request from Hughes Aircraft Co. that would allow a bankrupt Brea defense contractor, Micronics International, to resume limited production of a problem-plagued missile component.

Micronics closed its Brea defense plant on Aug. 29 after the Defense Department refused to accept delivery of the company’s safety and arming devices, also known as fuzes. Two weeks later, Micronics filed for bankruptcy.

Defense Department officials have said the Micronics devices have repeatedly failed tests, bringing into question the reliability of the $4,500 part. Micronics officials have said the devices work fine.

The Micronics shutdown threatens to delay or halt production on some key missile programs, because the Brea firm is the sole supplier of the parts used in the Advanced Medium-Range Air-to-Air Missile (AMRAAM), Phoenix, Sidewinder, Sparrow and other missile programs. The devices are used to detonate warheads or prevent them from detonating prematurely.

During a hearing Tuesday in Santa Ana, a Hughes representative said the company will be unable to deliver AMRAAM missiles to the Air Force by the first quarter of 1990, as its contract stipulates, unless Micronics is allowed to resume production. Micronics supplies arming devices to Hughes for use on the AMRAAM.

In court papers, Hughes said the Micronics shutdown has already resulted in the company falling behind schedule in delivering AMRAAMs to the Air Force.

Federal Bankruptcy Judge James M. Barr approved the Hughes request, saying it would allow “the debtor (Micronics) to get back up and running again.”

Micronics laid off more than 100 employees when it closed the Brea plant. Micronics officials could not be reached for comment Tuesday, and it was unclear when production at the Brea plant would resume, for what period of time and how many employees will be rehired.