Hawker Beechcraft Bankruptcy Takes A Turn
Talks between Hawker Beechcraft and Superior Aviation Beijing Co. have ended without agreement and the company has now announced plans to emerge from Chapter 11 protection as the standalone company, Beechcraft Corporation. A letter to customers signed by Hawker Beechcraft chairman Bill Boisture and executive vice president Shawn Vick said the company's main goal is to ensure the company completes reorganization "in a strong operational and financial position." That may leave it without Hawker product lines "or a closure of the entire jet business," as a result of strategic or financial considerations. The company says it will focus on other holdings, including piston lines and refurbishments, which are seen to "have high growth potential."
"In consultation with its key creditor constituents," the letter says, the company is "evaluating its strategic alternatives for Hawker product lines." Specifically, that could include sale of some or all associated product lines. If no suitable bids are received, the jet lines could be shuttered altogether. The company says it will focus instead on those areas it has identified as having high growth potential. That includes turboprop, piston, special mission and trainer/attack aircraft as well as parts, maintenance, repairs and refurbs. While the company's discussions with Superior are over, it still retains a $50 million deposit from the company, which it says is "now fully non-refundable" and the property of Beechcraft. The company says it has sufficient liquidity to complete its restructuring and has announced that it will develop and file a Joint Plan of Reorganization which will be the subject of a hearing on Nov. 15, 2012.