California’s Mare Island Dry Dock (MIDD) filed for bankruptcy on February 14 as part of a plan to reorganize and seek a sale or partnership to keep the shipyard running. The move comes after MIDD lost a critical U.S. Coast Guard maintenance contract for the icebreaker USCGC Healy to Vigor Marine, causing financial strain. Despite submitting the lowest bid, MIDD was not selected due to logistical advantages cited for the winning company. The company laid off 65 workers in December but expects to retain about 50 employees during restructuring. MIDD, which has operated the yard since 2013, is currently in discussions with potential buyers and partners, with hopes that a merger could help secure larger future contracts, such as maintenance for the USCGC Polar Star.