Business

May 4, 2012

Hawker Beechcraft reaches agreement to reduce debt, strengthen company for future

Hawker Beechcraft announced May 3 that it has reached an agreement with a significant number of its senior secured lenders and senior bondholders on the terms of a financial restructuring plan that will strengthen the company for the future and eliminate approximately $2.5 billion in debt and approximately $125 million of annual cash interest expense.

To implement the terms of the prearranged restructuring expeditiously, Hawker Beechcraft and certain of its subsidiaries today filed voluntary petitions under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York.

The terms of the prearranged restructuring agreement will take effect when the company’s reorganization plan is confirmed by the Court and the Chapter 11 case is concluded.

As part of the prearranged restructuring, Hawker Beechcraft obtained a commitment for $400 million in Debtor-in-Possession financing, which will enable it to continue paying employees, suppliers, vendors and others in the normal course of business.

“We are pleased to have reached an agreement with our largest lenders and bondholders on a solution to stabilize and improve our capital structure,” said Robert S. Miller, CEO. “In the last three years, the company has made aggressive transformational changes in all operational functions, and today’s announcement represents the next step forward. Restructuring our balance sheet and recapitalizing the company in partnership with our debtholders will dramatically improve Hawker Beechcraft’s ability to compete in a rapidly changing environment.”

Hawker Beechcraft continues to operate in the normal course of business and serve its customers around the world. All orders for available products will be fulfilled and the company’s commitment to providing the best products and service in the industry remains unchanged. Further, the company will comply with all Department of Defense acquisition and maintenance contracts, as well as agreements with international air forces including, but not limited to, the recently announced sale of T-6C+ trainer aircraft to Mexico. Hawker Beechcraft is also committed to moving forward with its bid to provide the U.S. Air Force with the AT-6 in support of the Light Air Support contract.

“As we have worked to develop this long-term plan to recapitalize the company and strongly position Hawker Beechcraft for the future, our employees have continued to build the best airplanes in the world and provide our owners with the most comprehensive global customer support in the industry,” said Miller. “The protections provided by the U.S. Bankruptcy Code and the financing commitment we have obtained put Hawker Beechcraft in a great position to continue to do so throughout the restructuring process.”

 




All of this week's top headlines to your email every Friday.


 
 

 

Headlines July 6, 2015

News Long wait to come to America for Iraqis, Afghans who served U.S. troops Long wait times and a shortage of available visas for a huge backlog of applications remain major issues for the U.S. government’s Special Immigrant Visa program intended to ease entry to the United States for Iraqis and Afghans who served as...
 
 

News Briefs July 6, 2015

Russian MiG fighter crashes in southern Russia, pilot lives The Russian Defense Ministry says a Russian air force fighter jet has crashed in the south but its pilot ejected safely. The MiG-29 fighter jet went down July 3 near the village of Kushchevskaya in the Krasnodar region, 620 miles south of Moscow. The ministry said...
 
 
Army photograph by Doug LaFon

Army researcher’s interest in robotics leads to innovative device

Army photograph by Doug LaFon Dan Baechle, left, from the U.S. Army Research Laboratory Multifunctional Materials research team, has created a laboratory prototype of a device he designed to sense and damp out arm tremors for A...
 

 
Air Force photograph by TSgt. Joseph Swafford

Pave Hawk maintainers keep rescue birds flying

Air Force photograph by TSgt. Joseph Swafford Airman Joshua Herron, a 41st Expeditionary Helicopter Maintenance Unit HH-60 Pave Hawk crew chief, completes a 50-hour inspection on a Pave Hawk at Bagram Airfield, Afghanistan, Jun...
 
 
Air Force photograph by SrA. Benjamin Raughton

B-52s demonstrate strategic reach

Air Force photograph by SrA. Benjamin Raughton A B-52H Stratofortress is marshalled to a stop at Barksdale Air Force Base, La., after a 44-hour sortie July 2, 2015. Aircrew members and two B-52s from Barksdale AFB’s 96th ...
 
 

Soldier missing from Korean War accounted for

The Department of Defense POW/MIA Accounting Agency announced July 1 that the remains of a serviceman, missing from the Korean War, have been identified and will be returned to his family for burial with full military honors. Army Sgt. Joseph M. Snock Jr. of Apollo, Pennsylvania, was buried July 6, in Arlington National Cemetery. In...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>