Bankruptcy court approves Hawker Beechcraft disclosure statement
Approval of the Hawker Beechcraft disclosure statement allows the company to approach creditors for their approval of the plan of re-organisation and plans for exit of Chapter 11 protection in January 2013.
Hawker Beechcraft announced that the disclosure statement filed in connection with the company’s joint plan of re-organisation (POR) has been approved by the US Bankruptcy Court for the Southern District of New York.
Court approval of the adequacy of the disclosure statement allows Hawker Beechcraft to begin soliciting approval of the POR from its creditors. The POR is supported by the official committee of unsecured creditors, and holders of a majority of the obligations under the company’s prepetition credit facility and senior unsecured bonds have also committed to support it.
Voting will be completed by January 22, 2013, and the company will seek approval from the court to exit bankruptcy at the confirmation hearing scheduled for January 31, 2013.
Upon its emergence from Chapter 11, the company plans to enter into a new financing facility of at least $525 million, consisting of a term loan and a revolving line of credit, that will be used to repay the debtor-in-possession (DIP) post-petition credit facility, issue letters of credit to replace the DIP and fund ongoing operations.
As part of its re-organisation, the company intends to rename itself Beechcraft Corporation and implement a business plan that focuses on its turboprop, piston, special mission and trainer/attack aircraft – the company’s leading products – and on its parts, maintenance, repairs and refurbishment businesses, all of which are profitable and have high growth potential.
