Friday, February 1, 2013
Hawker Beechcraft’s Bankruptcy Exit Delayed
Hawker Beechcraft’s Joint Plan of Reorganization was partially approved Thursday, with a U.S. Bankruptcy Court judge asking the company to slightly tweak the plan as to not violate bankruptcy laws.
The Wichita, Kan.-based aircraft manufacturer said its plan needs minor changes to its treatment of equity in the subsidiary Hawker Beechcraft Corp. The plan would exchange debt for equity and place the company’s creditors in control of Hawker, but Judge Stuart M. Bernstein said that the plan would allow equity holders to retain their interests.
The company’s plan to “retain J.P. Morgan Securities LLC and Credit Suisse Securities (USA) LLC to act as joint lead arrangers and joint book runners to structure, arrange and syndicate $600 million in exit financing,consisting of a term loan and a revolving line of credit,” has been approved.
Hawker Beechcraft filed for bankruptcy in May 2012 citing reduced demand for its business jets. In a statement issued Friday the company said it will review the court’s objection and continue to pursue its plan to emerge from Chapter 11 in February as Beechcraft Corp. More