Hawker Beechcraft Preparing to File Bankruptcy
Reuters is reporting, citing people familiar with the matter, that aircraft maker Hawker Beechcraft is preparing to file for bankruptcy protection in the next several weeks.
Hawker, which was bought by private equity firms in 2007 for $3.3 billion, is negotiating a prearranged bankruptcy with its largest lenders, which include Centerbridge Partners, Angelo Gordon and Capital Research & Management, Reuters said.
On March 28, Hawker Beechcraft announced it had reached an agreement with certain lenders that will provide the company with approximately $120 million of additional igquidity through an incremental term facility under its existing credit facility. The company said it intends to use the proceeds to fund its ongoing operations as it continues working with its lenders toward a comprehensive recapitalization. Under a forbearance agreement, scheduled to expire on June 29, 2102, the company’s obligations to make certain interest payments on its senior debt has been deferred.
Robert S. Miller, CEO of Hawker, said, “Like others in the industry, Hawker Beechcraft has been impacted by the prolonged weakness in our markets. In the last three years the company has made aggressive transformational changes in all operational functions. While these steps have been effective, the company is operating with a debt load that is restricting its ability to succeed and fully execute on its strategy.”
To read the full Reuters story, click here.
To read the Hawker Beechcraft news release, click here.