Court Approves Hawker Beechcraft Continued Use of DIP Loan
U.S. Bankruptcy Judge Stuart Bernstein of U.S. Bankruptcy Court in the Southern District of New York has granted permission for Hawker Beechcraft to continue using its $400 million debtor-in-possession (DIP) loan after the company addressed concerns from its official committee of unsecured creditors and the Pension Benefit Guaranty Corp, a Dow Jones Daily Bankruptcy Review article said.
The creditors and government pension insurer want to investigate Hawker Beechcraft’s 2007 leveraged buyout. The decision gives the both until august 10 to investigate the LBO. The company was purchased five years ago by Goldman Sachs Group’s private equity business and Onex Partners for $3.3 billion.
The company’s senior lenders including Centerbridge Partners; Angelo, Gordon & Co.; Sankaty Advisors LLC; and Capital Research & Management have all committed to be backstop lenders for the company’s DIP loan, the article said.
The article also noted that the business jets maker is seeking a buyer for the company.
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