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IMC Club News

Hawker Beechcraft Filed For Chapter 11 Bankruptcy

04 May 2012 6:30 AM | by IMC News Service (Administrator)


Hawker Beechcraft Filed For Chapter 11 Bankruptcy

Wichita, KS
- Hawker Beechcraft announced that it has reached an agreement with a significant number of its senior secured lenders and senior bondholders on the terms to eliminate approximately $2.5 billion in debt and approximately $125 million of annual cash interest expense. To implement the terms of the prearranged restructuring expeditiously, Hawker Beechcraft filed petitions under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York. The terms of the prearranged restructuring agreement will take effect when the company’s reorganization plan is confirmed by the Court and the Chapter 11 case is concluded.
 
As part of the restructuring, Hawker Beechcraft obtained a commitment for $400 million in Debtor-in-Possession (DIP) financing, which will enable it to continue paying employees, suppliers, vendors and others in the normal course of business.
 
Robert S. (Steve) Miller, CEO of Hawker Beechcraft said, “We are pleased to have reached an agreement with our largest lenders and bondholders on a solution to stabilize and improve our capital structure. In the last three years, the company has made aggressive transformational changes in all operational functions, and today’s announcement represents the next step forward. Restructuring our balance sheet and recapitalizing the company in partnership with our debt-holders will dramatically improve Hawker Beechcraft's ability to compete in a rapidly changing environment.”

 
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