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.


 
 

 

Headlines November 24, 2014

News: Hagel said to be stepping down as defense chief under pressure - Defense Secretary Chuck Hagel is stepping down under pressure, the first cabinet-level casualty of President Obama’s Democratic majority in the Senate and a beleaguered national security team that has struggled to stay ahead of an onslaught of global crises. Afghan mission for U.S....
 
 

News Briefs November 24, 2014

Fog forces five U.S. choppers to land in Polish field Officials say that that fog forced five U.S. Army helicopters to make an emergency landing in a Polish field and spend the night there, the second such incident since September. The U.S. Army said 15 soldiers were moving equipment to their base in Germany Nov....
 
 
Air Force photograph by Samuel King Jr.

Navy’s first F-35C squadron surpasses 1,000 flight hours

Air Force photograph by Samuel King Jr. An F-35C Lightning II aircraft piloted by Lt. Cmdr. Chris Tabert, assigned to Strike Fighter Squadron (VFA) 101, flies the squadron’s first local sortie. The F-35C is the carrier va...
 

 
boeing-SC-787

Boeing South Carolina begins final assembly of its first 787-9 Dreamliner

Boeing has started final assembly of the 787-9 Dreamliner at its South Carolina facility. The team began joining large fuselage sections of the newest 787 Nov. 22 on schedule, a proud milestone for the South Carolina team and a...
 
 
Lockheed Martin image

Ball Aerospace equips Orion mission with key avionics, antenna hardware

Lockheed Martin image Ball Aerospace & Technologies Corp. is providing the phased array antennas and flight test cameras to prime contractor Lockheed Martin for Orion’s Exploration Flight Test-1 (EFT-1), which is an u...
 
 

Salina, Kansas, recalls anniversary of shuttered base

It has been 50 years this month since the announcement that Schilling Air Force Base was closing rattled Salina residents. The Salina Journal, which carried news of the closure in its Nov. 19, 1964, editions, reported that the economic disaster then spared no part of the community – real estate, retail, civic involvement, church attendance,...
 




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>