Bridger Aerospace, an aerial firefighting company in Montana, secured a $160 million bond from Gallatin County to expand its workforce. However, according to recent reports, the company subsequently allocated $134 million of those funds to service existing debt owed to New York-based investment firm Blackstone.
As scrutiny intensifies surrounding the company’s financial dealings, particularly in light of its former CEO and current Republican Senate candidate Tim Sheehy, questions are being raised about the implications for Gallatin County and its residents. Sheehy, a former Navy SEAL, is vying to unseat Democratic incumbent Jon Tester in the upcoming election.
NBC News reported that Sheehy established Bridger Aerospace in 2013 and cultivated a deal with Gallatin County, leveraging the county’s strong credit rating. The initial plan was for the bond proceeds to facilitate job creation and the construction of two new aircraft hangars. However, with a decline in wildfires this year—only 42,603 reported as of now compared to a 10-year average of 48,689—Bridger’s revenues have taken a hit.
In its quarterly financial filing for the period ending June 30, 2024, Bridger disclosed having “a substantial amount of debt,” warning that its ability to continue operations could be at risk if the debt is not managed effectively.
A potential victory for Sheehy in November could shift control of the Senate to Republicans, raising the stakes regarding his association with Bridger. After stepping down as CEO in July, Sheehy has highlighted his business expertise as a key campaign asset.
Concerns regarding the bond deal have surfaced, particularly whether the Gallatin County board was fully aware of Bridger’s precarious financial status; since its inception, the company has incurred losses totaling $150 million. Prominent Wall Street investor Marc Cohodes has called for an investigation, questioning Bridger’s portrayal as a “socially and economically disadvantaged business” when seeking federal support.
Cohodes expressed worry that if Bridger defaults, Gallatin County would face legal ramifications. “Gallatin County had their name on the bonds,” he told the Bozeman Daily Chronicle. “When they default, and they will, lawyers and lawsuits will come after Gallatin.”
In response, Sheehy’s campaign has dismissed dissenting voices as partisan attacks from Tester supporters. A campaign spokesperson emphasized the positive role of Bridger in wildfire management and criticized efforts perceived as trying to undermine the company and its contributions to local job security.
Zach Brown, a Gallatin County commissioner, defended the county’s involvement, asserting, “It isn’t our role to monitor the construction and operational decisions of a private company.” He added that the county’s support is to endorse projects that serve the public interest.
While Gallatin County is not directly responsible for the bond repayments, its credit rating could be at risk if Bridger were to go bankrupt. Since going public in January 2022, Bridger’s stock has dropped 64%.
The company reported losses of $77 million in 2023 and has acknowledged the challenge of meeting its financial obligations. As noted by Bridger’s auditor, there are serious doubts regarding its ongoing viability.
In response to the financial pressures, Bridger has begun cutting costs, reducing its workforce from 166 to 148. A spokesperson also mentioned that the company continues to pay interest on the bonds, which are backed by significant collateral that has appreciated since issuance.
Separately, Bridger’s current CEO, Sam Davis, highlighted that the company has successfully managed over 160 wildfires this season, expressing gratitude for the support from Gallatin County that has enabled partnerships with local businesses.
As all this unfolds, Sheehy himself is facing scrutiny over his military claims. While he has asserted he was shot in Afghanistan, doubts have been raised about the validity of that statement, with some alleging the injury may have been self-inflicted in 2015. Sheehy maintains that he was indeed injured in combat, stressing that questioning his service is reminiscent of stolen valor accusations.
Furthermore, Sheehy has come under fire for past remarks about Crow Native Americans, which he attributes to old recordings that he claims were taken out of context.
