Alabama Aircraft Industries, formerly PEMCO, put its 326 employees and the UAW union on notice that the Birmingham facility could close April 15th.
The company filed for chapter eleven bankruptcy last week.
A spokesperson says it's just part of that process but is optimistic that the company will remain open.
In a statement, CEO Ron Aramini said, "the primary goal of Alabama Aircraft Industries is to address long-term indebtedness and in particular long-term pension obligations under the terms of its pension plan."
In 2007, the company lost a billion dollar contract for refueling tanks.
The union spokesperson did not return calls.