Hawker Beechcraft lost $481.8 million in 2011
Hawker Beechcraft estimates that the company lost about $481.8 million in 2011 compared to losses of $173.9 million in 2010.
The company says the figures are based on preliminary information and it will file a full annual report by April 12. It was due on March 31.
“The Company was in violation of its financial covenants under its credit agreement with its primary lenders as of December 31, 2011 and… has entered into a forbearance agreement and amendment to its credit agreement. The Company is in negotiations with its secured lenders and other key constituents regarding a comprehensive recapitalization. If the Company is unable develop a plan for and implement a comprehensive restructuring, or ensure sufficient liquidity to maintain operations, there can be no assurance that it will continue to operate as a going concern,” said the company in its SEC notification of a late filing.
Hawker Beechcraft says the 2011 loss includes $304.9 million in restructuring and non asset impairment charges. This compares to $40.5 million in similar charges in 2010.
“The Company anticipates that its Form 10-K for the year ended December 31, 2011 will include an explanatory paragraph from the Company’s independent registered public accounting firm expressing substantial doubt about its ability to continue as a going concern,” said Hawker Beechcraft in the SEC filing.
It also says that it will report problems with company’s internal financial reporting. Hawker Beechcraft says this is because of issues implementing a new SAP enterprise information system and difficulties in keeping and hiring qualified accountants and finance specialists.
Kirsten Bartok, vice president of customer finance and corporate development, was one finance specialist whom left the company in February.
Hawker Beechcraft has hired Alvarez & Marsal, a specialist restructuring firm, to solve problems implementing the system. Karin-Joyce Tjon, the manufacturer’s CFO joined Hawker from Alvarez & Marsal.
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!”