Hawker Beechcraft move closer to end of Chapter 11
Hawker Beechcraft have announced the key creditors voting in the company’s solicitation process have overwhelmingly approved its proposed Joint Plan of Reorganisation.
The company also announced that JP Morgan Securities LLC and Credit Suisse Securities (USA) LLC have agreed to act as joint lead arrangers and joint bookrunners to structure, arrange and syndicate $600 million in exit financing, consisting of a term loan and a revolving line of credit. The affiliated banks of the joint lead arrangers, JPMorgan Chase Bank, N.A. and Credit Suisse AG, have committed to underwrite the financing. The financing will be used to repay all claims under the debtor-in-possession (DIP) post-petition credit facility, pay certain settlement and cure payments and fund ongoing operations. The financing is subject to, among other things, completion of definitive financing documentation and Bankruptcy Court approval.
Robert S. “Steve” Miller, CEO, said, “The tremendous show of support of our creditors for the Plan, which will dramatically reduce Hawker Beechcraft’s debt load, and the financing commitment from JPMorgan and Credit Suisse mark an important milestone for the company as it moves closer to emerging from the restructuring process.”
Bill Boisture, chairman, said, “The reorganised Beechcraft Corporation will emerge from this process in a strong operational and financial position, with the working capital and flexibility to execute a strategy built around our core products like the world-renowned King Air twin engine turboprop and the T-6 military training aircraft, which will enable the company to compete well into the future.”
Hawker Beechcraft will seek approval from the Court to exit bankruptcy at the confirmation hearing scheduled for January 31 and expects to emerge from Chapter 11 in the second half of February. A new board of directors will be appointed by the new owners of the company and will take over on the date of emergence.