Business

October 19, 2012

Hawker Beechcraft to emerge from Chapter 11 as standalone company

Hawker Beechcraft, Inc. announced Oct. 18 that it intends to emerge from Chapter 11 protection as a standalone company.

Hawker Beechcraft also announced that it is no longer pursuing a transaction with Superior Aviation Beijing Co., Ltd.
(Superior) because the parties could not reach agreement on the terms of a Plan Sponsorship Agreement.

“We made the decision to proceed with the standalone Plan of Reorganization after determining that, despite our best efforts, the proposed transaction with Superior could not be completed on terms acceptable to the company,” said Robert S. “Steve Miller, CEO. “We are disappointed that the transaction did not come to fruition, but we protected ourselves by obtaining a $50 million deposit from Superior that is now fully non-refundable and property of the company. The go-forward business plan we have developed with our creditors ensures that we will emerge from this process in a strong operational and financial position, with an enhanced ability to compete well into the future.”

Upon its emergence from Chapter 11, the company intends to rename itself Beechcraft Corporation and will implement a business plan that focuses on its turboprop, piston, special mission and trainer/attack aircraft – the company’s most profitable products – and on its high margin parts, maintenance, repairs and refurbishment businesses, all of which have high growth potential.

“Beechcraft Corporation will emerge as the world’s leading designer and manufacturer of turboprop, piston and trainer/attack aircraft with the largest global customer support network in the industry,” said Bill Boisture, chairman of Hawker Beechcraft Corporation. “Our business strategy will focus on growing our key existing product lines: high performance single and twin engine piston and turboprop aircraft, uniquely missionized variants for the global special mission market, and multi-role light attack and trainer aircraft systems as well as the product development opportunities within these segments.”

As part of this plan, the company, in consultation with its key creditor constituents, is evaluating its strategic alternatives for the Hawker product lines, which could include a sale of some or all of those product lines, or a closure of the entire jet business if no satisfactory bids are received.

Hawker Beechcraft will soon file an amended Joint Plan of Reorganization with the U.S. Bankruptcy Court for the Southern District of New York. The company will also file an amended Disclosure Statement that describes the details of the proposed POR. The company intends to schedule a hearing on the adequacy of the Disclosure Statement on Nov. 15, 2012.

Hawker Beechcraft’s key economic stakeholders, including holders of a significant majority of the company’s secured bank debt and unsecured bond debt, have already agreed to support the primary terms of the POR subject to Bankruptcy Court approval of the amended Disclosure Statement. Under the POR, pre-petition secured bank debt, unsecured bond debt, and general unsecured claims will be canceled and holders of such claims will receive equity in the reorganized company in the percentages negotiated by the major creditor groups at the time the company commenced its Chapter 11 proceedings.

The POR contemplates that Hawker Beechcraft’s $400 million debtor-in-possession post-petition credit facility will be repaid fully in cash. In addition, the company will enter into a new financing package that will go into effect upon its emergence from Chapter 11.

The company has more than sufficient liquidity to complete its restructuring and expects to enter into an extension of its DIP post-petition credit facility, the maturity date of which would coincide with its anticipated emergence from Chapter 11 in the first quarter of 2013. Court approval of the adequacy of the Disclosure Statement will allow Hawker Beechcraft to begin solicitation of votes for confirmation of the POR.




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


 
 

 

Lockheed Martin Australia to deliver modern, affordable C-130J training solutions to RAAF

The Royal Australian Air Force has awarded Lockheed Martin Australia a contract to supply a modern C-130J-30 Virtual Maintenance Trainer and a Multi-Function Training Aid to support maintenance and aircrew training at RAAF Base Richmond. Through this major upgrade, the RAAF will have a standardized curriculum tailored for its operations and based on decades of...
 
 

Raytheon awarded U.S. Air Force aircraft integration, life cycle technical support contract

Raytheon has been awarded a $35 million sole-source contract by the U.S. Air Force to provide aircraft integration and life-cycle technical support on an advanced bomb carriage and release system for aircraft. The advanced system will allow both the Air Force and U.S. Navy to perform more missions utilizing less aircraft. “JMM BRU end users...
 
 

General Dynamics UK completes review for SCOUT reconnaissance variant

OAKDALE, South Wales – General Dynamics UK has successfully completed the Critical Design Review for the SCOUT Reconnaissance variant, as part of the SCOUT Specialist Vehicle program. The completion of the SCOUT Reconnaissance variant CDR is a significant marker in the SCOUT SV program, with the first SCOUT Reconnaissance pre-production prototype to be completed later...
 

 

Boeing, Royal Australian Air Force test extended range weapon

The Boeing Joint Direct Attack Munition Extended Range demonstrated significant range increase while maintaining its expected accuracy during flight testing conducted by Boeing and the Royal Australian Air Force. The testing centered on a new wing kit that, when used in conjunction with the weaponís guidance kit, increases the bomb’s range from approximately 15 miles...
 
 

DRS Technologies to provide comm systems for Royal New Zealand Navy frigates

DRS Technologies Inc., a Finmeccanica Company, announced Feb. 25 that its Canadian subsidiary will be providing tactical integrated communications systems to the New Zealand Ministry of Defense for the Royal New Zealand Navy’s ANZAC-class frigates. This subcontract was awarded to DRS Technologies Canada Ltd. in support of a communications modernization contract from Lockheed Martin Canada...
 
 

Northrop Grumman LITENING achieves two million operating hour milestone

In the life cycle of every military system, some milestones stand out as signature achievements. One million operating hours is one of them – and Northrop Grumman’s fielded AN/AAQ-28(V) LITENING pods have hit that number for the second time. “This is a significant milestone for the LITENING program and our team is proud to be...
 




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>