The Montana aerial firefighting team once led by Tim Sheehy, a former Navy SEAL and Republican Senate candidate who could oust Democratic incumbent Jon Tester in next month’s election, is under increased scrutiny. .
Bridger Aerospace, the company Mr. Sheehy founded in 2013, used its strong credit rating to sign a deal to raise $160 million in bonds for the Gallatin, Montana, eastern Montana city, according to NBC News. Negotiated with the county. The county intended to benefit from Bridger’s plan to hire more workers and build two new aircraft hangars.
But the company used most of the proceeds from its 2022 bond offering, or $134 million, to repay a previous investment from New York-based investment giant Blackstone.
Bridger’s financial situation is complicated by fewer wildfires this year, which has lowered Bridger’s revenue. As of Tuesday, the National Interagency Fire Center reported 42,603 wildfires had occurred across the country this year, compared to the 10-year average of 48,689.
In its financial report for the quarter ended June 30, 2024, Bridger said the company had “substantial debt” and that failure to repay that debt would “impair its ability to continue as a going concern.” “There are serious questions that could linger for a long time.”
A victory for Mr. Sheehy in November could give Republicans a majority in the Senate, making his relationship with Mr. Bridger an important topic for voters heading to the polls.
Mr. Sheehy, 38, stepped down as CEO of the company in July. He has based his campaign in part on his business acumen.
Questions surrounding Gallatin County’s approval of Bridger’s bond transaction center on whether the board was properly informed of the company’s financial condition (it has lost $150 million since its inception) and whether Gallatin County’s It revolves around whether the credit rating of the company could be affected.
Wall Street investor Mark Cohodes, who issued early warnings about FTX and its CEO Sam Bankman Fried, pointing to the 2008 bankruptcy of Lehman Brothers, also wrote a letter to Gallatin County and America’s small businesses. He is one of the signatories of the letter. Government calls for investigation into Bridger’s use of capital.
The letter questioned why Bridger presented itself to the federal government as a “socially and economically disadvantaged company.”
“Gallatin County’s name is on the bond and if it defaults, which it will continue to do, lawyers and lawsuits will go after Gallatin County,” Cohodes told the Bozeman Daily Chronicle. Deaf,” he said. “‘Read the fine print’ is not a valid defense in this case.”
But Mr. Sheehy’s campaign pushed back, saying it was Mr. Tester’s Democratic supporters who were criticizing the deal.
“It’s clear that Mr. Tester’s supporters wrote this letter for one purpose: to hurt Tim’s campaign, destroy the Montana company, and help Jon Tester.” a spokesperson told The Chronicle.
“Bridger Aerospace is a great company that protects public lands by fighting wildfires, and the author of this letter is destroying Montana businesses, putting Montanans out of work, and wiping out their retirement savings. I hope you stop trying to leave.”
Gallatin County Commissioner Zach Brown told NBC he was not concerned that the bail money was used to pay Blackstone.
“It is not our role to monitor the construction and operational decisions of private companies or to communicate their progress to the community,” Brown told NBC.
“Our role is not to monitor whether they have added jobs, but to support the public interest of their projects.”
Although Gallatin County is not in danger of repaying its bonds, the county’s credit rating could be affected if Bridger goes out of business. Since Bridger went public in January of last year, the company’s stock price has fallen 64%.
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Bridger reported losses of $77 million in 2023 and was at risk of not being able to meet its financial obligations.
According to the Montana Free, Bridger’s auditors said, “The company is suffering from ordinary losses from operations, deficits in operating cash flow, violations of debt covenants, and insufficient liquidity for operating funds, and our ability to continue as a going concern is in doubt. There are big questions.” press.
The company said in the report that it has begun cutting costs and reduced its workforce to 148 from 166 in 2022.
A Bridger spokesperson told NBC that the company continues to make interest payments on the bonds, which are backed by “strong collateral that has increased significantly in value since issuance,” and is working to repair cash flow issues. spoke.
Separately, Bridger CEO Sam Davis said the company has fought more than 160 wildfires in Montana since the bond was issued.
Davis said the county’s support for the company has been “tremendous,” and that the fire company has “contracted with multiple local businesses as it expands and operates, building a strong customer base in local hotels, restaurants, and transportation.” We were able to provide it,” he added. ”.
Questions surrounding Bridger have been raised as Mr. Sheehy’s work history has come under scrutiny. The Trump-backed candidate claimed he was shot in the arm during a gunfight in Afghanistan.
However, a park ranger in Montana claimed the gunshot wound was self-inflicted in Glacier National Park in 2015. Sheehy’s fellow soldiers also do not recall Sheehy ever mentioning or seeing any gunshot wounds during his tour of duty in Central Asia.
Mr. Sheehy maintains that he was shot in Afghanistan, and claims to the contrary is “akin to false accusations of stolen courage.”
Sheehy has also come under fire for characterizing Crowe’s Native Americans as “drunken Indians.” The Daily Montanan reported that he told Fox News last month that the recordings were old and suggested they had been edited.
