Hawker Beechcraft late filing annual report due to debt negotiations
Hawker Beechcraft Acquisition Company has said that it was unable to file its annual report on time because its management team has been too busy negating with lenders. It expects to post the Form 10K on April 16. It was meant to be filed on March 30, 2012.
The company says it is also having difficulty implementing a new SAP enterprise information system
“Hawker Beechcraft Acquisition Company, LLC and Hawker Beechcraft Notes Company are unable to file the Annual Report on Form 10-K for the year ended December 31, 2011 by the prescribed filing deadline without unreasonable effort and expense because the Company has devoted and continues to devote substantial resources to negotiations with its senior lenders and other creditors in light of ongoing adverse economic and industry conditions,” said Karin-Joyce Tjon, Hawker Beechcraft’s CFO, in a filing to the SEC.
Tjon and Steve Miller, Hawker Beechcraft’s CEO who joined in February, have spent weeks re-negotiating with secured lenders. On March 27 Hawker Beechcraft announced that it had entered into a forbearance agreement and third amendment to its credit agreement with its secured lenders. Three lenders – Centerbridge Partners, Angelo Gordon & Company, and Capital Research & Management -agreed to lend Hawker Beechcraft an extra $120 million and others agreed not to enforce rights if the company failed to meet financial covenants. The agreement lasts until July 29, 2012.
Hawker Beechcraft is also looking to hire a director for its SAP centre of excellence. One online advertisement for the role said: “There is some heavy lifting to do, but this opportunity offers the best candidate an opportunity to leave their thumbprint on this company, and to be professionally and financially rewarded for their efforts. If this sounds like something you can handle we would love to hear from you!”
The SEC filing ended by saying: “The Company’s senior management, finance, and legal teams have spent and are continuing to spend a significant amount of time negotiating with the Company’s secured lenders and other key constituents regarding a comprehensive recapitalization of the Company. The Company can provide no assurances that it will be able to reach agreement regarding any comprehensive recapitalization or that the Company will be able to effect such a recapitalization.”