Hawker Beechcraft Reorganization Approved
A U.S. Bankruptcy court has approved Hawker Beechcraft's plan of reorganization to emerge from bankruptcy as a smaller stand-alone company without a jet line, carrying at least $525 million in new financing. The company plans to continue as Beechcraft Corp., unburdened of its Hawker 4000 and Premier jet lines. It will acquire its financing in the form of a term loan and a revolving line of credit, according to the Wichita Eagle. Some $400 million will be used to pay off credit acquired by the company when it entered bankruptcy. The rest will be used to fund the company's operations. The plan has the won the support of a majority of its debt holders. Creditors will conclude their voting process in January. The company has said its future plans could include up to four new offerings, but another court date is coming.
A court hearing scheduled for Jan. 31 will decide if the company is allowed to emerge from bankruptcy after creditor voting has concluded. If approved, Beechcraft Corp. may follow plans announced at NBAA in Orlando, where company officials said that new offerings could be coming from the Baron and Beechjet lines. For the immediate future, company representatives have stated they hope Beechcraft will focus on its profitable businesses, including its piston, turboprop, military, parts, repair, maintenance and refurbishment activities. It is not yet clear how many employees will be retained. Hawker Beechcraft originally entered bankruptcy to drop $2.5 billion in debt.