Hawker Beech Seeks Break From Lenders
Hawker Beechcraft is looking for a break from the holders of a $182 million revolving line of credit as it grapples with the rough economy. According to Bloomberg, the Wichita planemaker, jointly owned by Goldman Sachs and Onex Corp., is close to violating the terms of the loan agreement in which its cash flow must grow. Hawker Beech has been hard hit by the collapse of the light jet market. Although the lenders could theoretically call the loan if the cash flow issue isn't resolved, financial experts quoted by Bloomberg say that doesn't make any sense.
Sam Goodyear, an analyst at CreditSights, suggested the lenders will cut Hawker Beech some slack, given the circumstances. "There's a logical path to giving these guys a little more time," Goodyear told Bloomberg. "If it was forced to liquidate right now, given all the macro uncertainty related to Europe, they're probably not going to maximize their recoveries."