Hawker Beechcraft receives court approval of first day motions
Hawker Beechcraft, Inc. has
announced that the US Bankruptcy Court for the Southern District of New York
has granted approval of the company’s “First Day Motions” as part of the
company’s voluntary filing for reorganisation under Chapter 11 of the US
Bankruptcy Code. Approval of these motions will enable Hawker Beechcraft to
continue to operate in the ordinary course of business during the reorganisation
Among the first-day motions
granted, Hawker Beechcraft received approval to continue to pay employees and
to pay all vendors and suppliers in the ordinary course for goods and services
delivered after the commencement of the Chapter 11 case. The company will
utilize a commitment for $400 million in Debtor-in-Possession (DIP) financing,
negotiated as part of the prearranged restructuring, to meet these obligations.
Hawker Beechcraft’s cases
are being presided over by the Honorable Judge Stuart Bernstein of the US
Bankruptcy Court for the Southern District of New York. Hawker Beechcraft’s
jointly administered case number is Hawker Beechcraft Inc., 12-11873.
On 3 May 2012, Hawker Beechcraft, Inc. and a
significant number of its senior secured lenders and senior bondholders agreed
to 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 and strengthen the company for the future.
The company’s legal
representative is Kirkland & Ellis LLP, its financial advisor is Perella
Weinberg Partners LP, and its restructuring advisor is Alvarez & Marsal.