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Me: Will Gauzy's current court-ordered restructuring interfere with any AIT projects involving the SPD Retrowal?
As of January 2026, Gauzy Ltd. is indeed navigating a significant financial restructuring, specifically involving a court-ordered "Redressement Judiciaire" (French law insolvency proceeding) for three of its French subsidiaries.
However, based on current updates, this is unlikely to interfere with AIT’s Thermolite RetroWAL projects in the near term. Here is the breakdown of why the system remains operational and what the risks are:
1. Operations are Continuing Gauzy has officially stated that the French proceedings are intended to preserve business operations and maintain employment. They have emphasized that they remain committed to "business continuity" for customers and stakeholders. Furthermore, as of January 26, 2026, Gauzy secured a $50 million equity line of credit to stabilize liquidity and support ongoing global operations.
2. The Production is Global, Not Just French While the French subsidiaries are under restructuring, Gauzy’s core SPD technology and chemical emulsions were originally developed in Israel, and they maintain manufacturing and R&D facilities there as well as a presence in the United States. Because AIT/LTI is a North American partner, their supply chain for SPD film is often insulated from localized European legal filings.
3. AIT/LTI's Role as the Buffer Since LTI SmartGlass (AIT) is the one that actually laminates the glass and builds the RetroWAL frame, they typically maintain their own inventory of film and components.
- Backlog Support: Gauzy recently reported a record purchase order backlog ($42.9 million), suggesting they are actively working to fulfill existing architectural contracts.
- Demonstrated Commitment: Just recently (late 2025), AIT and Gauzy jointly debuted the next-gen RetroWAL system at major industry trade shows (GlassBuild America), signaling that the partnership is currently active and forward-looking.
4. Key Risks to Watch While "business as usual" is the current message, there are two things to keep an eye on if you are managing a live project:
- Management Turnover: Gauzy's CFO recently resigned (effective April 2026), and several board members have stepped down. Significant leadership shifts can sometimes lead to administrative delays in large-scale contracts.
- Debt Defaults: The French proceedings did trigger a technical default on some of Gauzy's senior debt. While they are working with lenders to resolve this, any sudden change in their ability to fund production could eventually impact lead times.
Me: When did Gauzy report the $42.9 million purchase order backlog?
Gauzy officially reported that record $42.9 million purchase order backlog on August 13, 2025, during their Second Quarter 2025 financial results announcement.
To put that number into context regarding AIT/RetroWAL projects, here is how that backlog was structured at the time:
- Reporting Period: The $42.9 million figure represented the state of orders as of June 30, 2025.
- Growth Trend: This was a significant jump from the $35.7 million they reported at the end of Q1 2025 (March), signaling that demand for their architectural and automotive smart glass was accelerating despite their financial growing pains.
- Composition: CEO Eyal Peso specifically highlighted that the backlog included "multi-year contracted" orders, with a notable portion dedicated to the Architecture sector (which includes the AIT RetroWAL system) and high-profile automotive projects like the Cadillac Celestiq.
Why this date matters for your question: Since this was reported in August 2025, it reflects the company's momentum before the French court proceedings began in November 2025.
While the "Redressement Judiciaire" (restructuring) in France created a headline-grabbing legal hurdle, the $42.9M backlog demonstrates that there is a massive line of customers waiting for their product. This high demand is precisely why Gauzy was able to secure the additional $50 million in liquidity recently—lenders and investors are willing to fund the restructuring because the actual business (the orders from companies like AIT) is still very much alive.
Would you like me to look up the most recent delivery timeline estimates Gauzy or AIT have provided for architectural glass since the restructuring started?
Me: Yes, please.
As of January 2026, the short answer is that while Gauzy is facing "liquidity challenges," they have taken aggressive steps to ensure that production—including the film for AIT's RetroWAL—is not interrupted.
Here is the most current status regarding delivery timelines and the impact of the restructuring:
1. Delivery Stability (The $50 Million Safety Net) Just yesterday (January 26, 2026), Gauzy announced it secured a $50 million equity line of credit from an existing shareholder.
- The Goal: This funding is specifically intended to "manage recent liquidity challenges and operational constraints" that had begun to affect business.
- Timeline Impact: This cash injection is designed to keep production lines running. Before this, there were reports of "shifts in the timing of deliveries" (delays), but the new funding is aimed at clearing that backlog.
2. Status of the French RestructuringThe court-ordered proceedings for the French subsidiaries are still active, but they are not a shutdown.
- Gauzy has already funneled nearly $8 million into those specific subsidiaries to stabilize them.
- They are currently appealing the involuntary insolvency findings while "collaboratively working with administrators" to keep the factories open and shipping.
3. Estimated Lead Times for 2026 While neither AIT nor Gauzy publishes a "universal" lead time (since every RetroWAL order is custom), the current industry climate suggests the following:
- Standard Orders: Expect roughly 12–16 weeks from final field measurements to delivery. This accounts for Gauzy’s film production and LTI’s lamination and framing process.
- Backlog Fulfillment: Gauzy admitted in late 2025 that about $4 million in orders scheduled for Q3 were pushed into Q4 and early 2025. With the new 2026 funding, they are currently in a "catch-up" phase.
- AIT Advantage: Because AIT/LTI is a primary North American partner, they often receive priority for architectural film shipments to support domestic US projects like the RetroWAL.
4. Leadership Transition One detail to note for project planning: Gauzy’s CFO (Meir Peleg) is resigning, but he is staying on until April 10, 2026, to ensure a "smooth transition." This suggests that the company is aiming for administrative stability through the spring.
Current Outlook: The risk of a total supply chain "freeze" has decreased significantly since the $50M credit line was announced. However, "operational constraints" were officially acknowledged this month, so minor delays (2-4 weeks beyond standard) are still a possibility for new orders. |
