Hawker Intends to Emerge From Chapter 11 as Standalone Company
Hawker Beechcraft, Inc. announced that it intends to emerge from Chapter 11 protection as a standalone company. Hawker Beechcraft also announced that it is no longer pursuing a transaction with Superior Aviation Beijing Co., Ltd. because the parties could not reach agreement on the terms of a Plan Sponsorship Agreement.
Robert S. (Steve) Miller, CEO of Hawker Beechcraft, Inc., said, “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.”
Upon its emergence from Chapter 11, the company intends to rename itself Beechcraft Corporation and will implement a business plan that focuses on its turboprop, piston, special mission and trainer/attack aircraft – the company’s most profitable products – and on its high margin parts, maintenance, repairs and refurbishment businesses, all of which have high growth potential.
Bill Boisture, chairman of Hawker Beechcraft Corporation, said, “