Thursday, October 18, 2012
Hawker Beechcraft Unveils Post-Bankruptcy Plans
Hawker Beechcraft intends to emerge from its Chapter 11 bankruptcy filing as a standalone company, and is no longer pursuing a proposed transaction with Chinese aircraft manufacturer Superior Aviation Beijing, the company said Thursday.
The Wichita, Kan.-based manufacturer originally filed for bankruptcy protection in June, and in July received approval from the U.S. Bankruptcy Court for the Southern District of New York to enter into exclusive negotiations with Superior. However, talks with Superior ended after the two sides failed to reach agreeable terms.
The company said it plans to rename itself Beechcraft Corp. upon its emergence from Chapter 11 protection, with a business plan that focuses on its most profitable products; turboprop, piston, special mission and trainer/attack aircraft.
Additionally, Hawker Beechcraft plans to schedule a Nov. 15 bankruptcy court hearing to file an amended Joint Plan of Reorganization.
“We made the decision to proceed with the standalone Plan of Reorganization after determining that, despite our best efforts, the proposed transaction with Superior could not be completed on terms acceptable to the company. We are disappointed that the transaction did not come to fruition, but we protected ourselves by obtaining a $50 million deposit from Superior that is now fully non-refundable and property of the company. The go-forward business plan we have developed with our creditors ensures that we will emerge from this process in a strong operational and financial position, with an enhanced ability to compete well into the future,” said Robert S. Miller, CEO of Hawker Beechcraft.
(Hawker 800 XPR, credit: Hawker Beechcraft)