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.


 
 

 
NG-growler2

Northrop Grumman delivers center/aft ‘shipset’ for first international EA-18G Growler

Northrop Grumman photograph Northrop Grumman mechanics perform final quality inspections on the center/aft fuselage shipset produced by the company for the first Australian EA-18G Growler. The subassembly will be delivered to B...
 
 

Boeing, ANA finalize order for three 787-10 Dreamliners

Boeing and All Nippon Airways (ANA) today finalized an order for three 787-10 Dreamliners, valued at approximately $900 million at list prices. With this order, originally announced as a commitment in January 2015, ANA becomes Boeing’s newest 787-10 customer and first airline in Asia to operate the entire family of 787 Dreamliners. “We truly appreciate...
 
 

Poland’s MESKO, Raytheon sign second letter of intent

In a move designed to collaborate and share advanced defense technologies, Raytheon’s Missile Systems business signed a Letter of Intent with MESKO, Poland’s leading missile and ammunition manufacturer. Areas of cooperation focus on Raytheon’s solutions for the KRAB howitzer precision fires and new Polish Attack Helicopter, including offset proposals and opportunities for MESK...
 

 

Airbus Group delivers first new UH-72A Lakota for Army initial-entry trainer mission

Airbus Group March 25 delivered to the U.S. Army the first UH-72A Lakota helicopter to come off the Airbus Helicopters Inc. production line configured for the Lakota’s latest mission, as the service’s initial-entry training helicopter. The aircraft will join seven Lakotas previously in the Army inventory that have already been modified to the training configuration...
 
 
Courtesy photograph

Lockheed Martin acquires high-speed wind tunnel, plans upgrades

Courtesy photograph A RATTLRS cruise-missile inlet undergoes testing at the High Speed Wind Tunnel at Lockheed Martin Missiles and Fire Control in Grand Prairie. Lockheed Martin recently purchased the facility and plans numerou...
 
 
Lockheed Martin photograph by Andrew McMurtrie

Off they go: Three more C-130Js delivered

Lockheed Martin photograph by Andrew McMurtrie March 19, a U.S. Air Force crew took delivery of and ferried an MC-130J Commando II Special Operations tanker aircraft that is assigned to Air Force Special Operations Command’s ...
 




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=""> <strike> <strong>