Swiftships LLC, Morgan City, La., filed for Chapter 11 bankruptcy protection on March 18 in the U.S. Bankruptcy Court for the Western District of Louisiana. The 84-year-old shipbuilder designs and constructs both military and commercial vessels.
According to Bondoro Insights, the company listed estimated assets and liabilities each between $10 million and $50 million in the voluntary reorganization filing.
Swiftships has long been a supplier of vessels to the U.S. military and commercial operators, but the yard has faced financial challenges in recent years following the loss of a key Navy contract tied to the Landing Craft Utility (LCU) 1700 program.
Swiftships was originally awarded a contract in 2018 for the detailed design and construction of the first LCU 1700 vessel, with additional follow-on contracts awarded in 2019 and 2020 for additional craft. The program included options for up to 32 vessels intended to replace the Navy’s aging Vietnam-era LCU fleet.
In 2024, the Navy halted work on the program and moved to terminate the contract after ongoing technical and program disagreements. The termination removed a major source of revenue for the Louisiana shipbuilder. Swiftships subsequently filed a lawsuit against the U.S. government alleging improper termination of the contract and seeking damages.
The Chapter 11 filing allows Swiftships to continue operating while it restructures its finances under court supervision.
The bankruptcy comes at a time when global military spending and demand for defense vessels have been increasing, but smaller shipyards tied to specific government programs can face significant financial risk if major contracts are delayed, canceled, or disputed.
Swiftships has built patrol boats, landing craft, and other vessels for military and commercial customers for decades and has been considered a key supplier for certain small craft programs.
The outcome of the restructuring and ongoing legal dispute will likely determine the future of the yard and its role in future Navy small craft programs.
