The Survival Of Hawker Beechcraft
Hawker Beechcraft Friday announced progress in its plans to emerge from Chapter 11 bankruptcy, possibly completing the transition before March. The company's creditors have approved its proposed reorganization plan and banks have committed to underwrite $600 million in funds that will serve as exit financing. The company is headed to court on Jan. 31 and expects to seek approval for the exit from bankruptcy at that time. Hawker Beechcraft would then seek to focus on core productions like the King Air and T-6. Certain details could still derail the process.
The financing is subject to several terms, including completion of documentation and the approval of the court. JPMorgan and Credit Suisse have committed to the financing. If approved, it will consist of a term loan and revolving line of credit to repay claims and fund ongoing operations. According to Hawker Beechcraft CEO Robert Miller, successful approval of the company's Joint Plan of Reorganization will dramatically reduce the company's debt load. A new board of directors will be appointed by the company's new owners on the date of emergence.