Lenders to US defense and cybersecurity contractor Peraton have formed a new creditor group as concerns grow over the company’s financial flexibility amid rising risks of a potential US government shutdown. The move reflects increasing caution among creditors who fear that delayed federal payments could strain Peraton’s cash reserves and complicate its debt management.
Peraton, a major contractor providing technology and security services to several US government agencies, including the Department of Defense and intelligence community, relies heavily on steady government funding. With renewed budget disputes in Washington raising the likelihood of temporary funding gaps, lenders are bracing for potential disruptions to cash flow across the government contracting sector.
Sources familiar with the situation said that the new creditor group includes a mix of institutional investors and private credit firms holding portions of Peraton’s leveraged loans. They have reportedly engaged financial advisors to coordinate discussions and monitor the company’s liquidity position. The formation of the group does not necessarily signal immediate distress, but rather a precautionary step to ensure collective communication in the event of funding delays or covenant pressures.
Peraton’s business model, like that of many defense and intelligence contractors, is closely tied to the stability of federal budgets. A government shutdown, even a short one, can disrupt payments for ongoing contracts, slow new project approvals, and increase uncertainty for suppliers. While many contractors are eventually reimbursed once funding resumes, the temporary strain on working capital can create short-term financial stress—especially for firms carrying large debt loads.
The company, owned by private equity firm Veritas Capital, has expanded rapidly in recent years through acquisitions that strengthened its position in national security, cybersecurity, and space operations. However, that growth has also left it with significant leverage, making it more sensitive to any interruption in cash inflows. Analysts note that Peraton has performed well operationally but continues to manage a complex balance sheet and tight liquidity margins.
Industry experts say the lenders’ decision to coordinate reflects a broader trend of heightened vigilance among credit investors in the defense sector. With rising interest rates and potential fiscal instability, investors are more closely tracking companies whose revenues depend on timely government contracts. Some lenders are also using the opportunity to renegotiate terms, secure additional reporting rights, or prepare for possible refinancing scenarios in the coming year.
For now, Peraton’s operations remain stable, and the company continues to fulfill key government contracts across cybersecurity, intelligence, and defense modernization programs. Its long-term outlook remains tied to strong demand for national security technology and digital transformation within the federal government. However, the near-term risk of funding delays has injected uncertainty into the financial landscape for many government-focused firms.
As Washington faces another round of budget negotiations, Peraton and its creditors will be closely watching how the situation unfolds. A prolonged shutdown could test the resilience of even well-managed contractors, while a quick resolution would help ease market tensions. Either way, the formation of this lender group underscores how fiscal uncertainty in the nation’s capital can ripple quickly through the private sector that supports it
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