According to the Administrative Office of the US Courts (AOUSC), the defense contractor's systems have become unavailable. A major concern is the Bankruptcy Noticing Center (BNC), which is responsible for preparing and delivering bankruptcy notices to the parties involved in cases throughout the nation.

In addition to bnc.uscourts.gov, bankruptcynotices.uscourts.gov and notices.uscourts.gov, several other associated websites, including the National Creditor Registration Service, are also unavailable. During the disruption, an important part of the bankruptcy process has been interrupted, potentially delaying communications between courts, creditors, debtors and attorneys. 

AOUSC says that the incident has interrupted the BNC's notice production and distribution services, preventing the users from accessing the affected platforms. According to BAE Systems, the security incident is limited to the BNC system, and has been acknowledged by the company. In response to the issue, the company has immediately taken immediate action and is working closely with the judiciary in order to determine the cause of the problem. 

In addition, the AOUSC confirmed that it has communicated with affected courts and is working with BAE Systems to restore services. According to the US Bankruptcy Court for the Eastern District of Texas, the disruption began on October 9, but the AOUSC confirmed the incident on October 15. During the period when the system remains unavailable, the court has warned of the potential for delays in the entry of notices and orders. 

The outage coincides with earlier security concerns surrounding the electronic case management infrastructure of the US federal judiciary. Following reports of sophisticated cyberattacks on its case management system in 2025, the judiciary announced additional measures to protect sensitive court documents. 

While the majority of court records are accessible to the public, some sealed filings contain confidential information and require stronger access controls. There was a widespread belief at the time, including an article published by Politico, that attackers had accessed the Case Management/Electronic Case Files (CM/ECF) and Public Access to Court Electronic Records (PACER) systems. 

Although the judiciary confirmed that confidential informants' identities had been reported, it did not confirm the extent to which confidential documents had been exposed. This latest incident highlights the operational risks associated with relying on a single service provider for a crucial judicial function. Because the BNC supports bankruptcy courts nationwide, an outage affecting its infrastructure may result in notices being delayed simultaneously across multiple jurisdictions. 

According to officials, the full scope of the incident has not been disclosed and no information has been confirmed. BAE Systems has not yet provided a time frame for the restoration of the affected services, so it is unclear for how long the disruption may last. This incident underscores the importance of securing third-party systems supporting critical judicial functions. 

Due to the unresolved issue of restoration of the affected platforms and the uncertainty regarding the full scope of the breach, both delays in bankruptcy communications and concerns regarding the privacy of sensitive court information remain unresolved.