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 August 18, 2014

News: U.S. mission in Iraq could expand, Pentagon official says - The mission for U.S. troops in Iraq to help Kurdish and Iraqi security forces in their fight against Islamic militants remains limited for now, but may expand after Iraqi leaders form a new government, a Pentagon spokesman said Aug. 19.   Business: Fuel deals top...
 
 

News Briefs August 20, 2014

Trials complete on fourth Coast Guard cutter Ingalls Shipbuilding in Pascagoula, Miss., has completed acceptance sea trials for the company’s fourth U.S. Coast Guard national security cutter, Hamilton. Jim French, Ingalls’ NSC program manager, tells The Mississippi Press) the Hamilton is scheduled to be delivered next month and commissioned on Dec. 6 in Charleston, South...
 
 
Army photograph by Sgt. Thomas Duval

Air Force, Army Aviation come together to complete vital mission in Egypt

Army photograph by Sgt. Thomas Duval Soldiers and airmen load a UH-60 Black Hawk into an Air Force C17 Globemaster III Aug. 19, 2104, at an old Israeli airstrip in the Sinai Peninsula of Egypt. The airstrip is now used by the M...
 

 
Air Force photograph by TSgt. Terri Praden

Joint effort validates ability to move Stryker vehicles via air

Air Force photograph by TSgt. Terri Praden An Army Stryker combat vehicle is guided into a C-17 Globemaster III during a 25th Infantry Division training exercise Aug. 13, 2014, at Joint Base Pearl Harbor-Hickam, Hawaii. The Str...
 
 
NASA image

Ozone-depleting compound persists, NASA research shows

NASA image Satellites observed the largest ozone hole over Antarctica in 2006. Purple and blue represent areas of low ozone concentrations in the atmosphere; yellow and red are areas of higher concentrations. NASA research show...
 
 

F-16V completes major capability milestone

The newest configuration of the F-16 Fighting Falcon, the F-16V, has reached a major capability milestone with the integration of a new Active Electronically Scanned Array radar. Completing this milestone on schedule demonstrates our ability to meet program commitments, said Roderick McLean, vice president and general manager of the F-16/F-22 Integrated Fighter Group at Lockheed...
 




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>