Hawker Beechcraft Inc., a world-leading manufacturer of business, special mission, light attack and trainer aircraft, filed for Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York on Thursday.
Hawker Beechcraft AT-6 trainer. Photo credit: Hawker Beechcraft
The company reached an agreement with a significant number of its senior secured lenders and senior bondholders on the terms of a financial restructuring plan that will 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 and certain of its subsidiaries filed bankruptcy.
As part of the prearranged restructuring, Hawker Beechcraft obtained a commitment for $400 million in Debtor-in-Possession financing, which will enable it to continue paying employees, suppliers, vendors and others in the normal course of business.
Robert 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.”
Hawker Beechcraft continues to operate in the normal course of business and serve its customers around the world. All orders for available products will be fulfilled and the company’s commitment to providing the best products and service in the industry remains unchanged. Further, the company will comply with all Department of Defense acquisition and maintenance contracts, as well as agreements with international air forces including the recently announced sale of T-6C+ trainer aircraft to Mexico. Hawker Beechcraft is also committed to moving forward with its bid to provide the U.S. Air Force with the AT-6 in support of the Light Air Support (LAS) contract. The company began a protest against the LAS contract process in November when they were excluded from bidding on the work by the Air Force.