Hawker deal with Superior Aviation fails

Hawker Beechcraft’s planned deal with Superior Aviation’s has fallen through, with the manufacturer now planning to emerge from Chapter 11 protection in 2013 as a standalone company, renamed as Beechcraft Corporation. The Hawker production lines will either  be sold or shut down.

Bill Boisture, chairman of Hawker Beechcraft Corporation, said:
“Beechcraft Corporation will emerge as the world’s leading designer and
manufacturer of turboprop, piston and trainer/attack aircraft with the
largest global customer support network in the industry.”

Superior will lose a $50 million deposit it paid to Hawker Beechcraft.

“Superior took too long. The deal dragged on and on and finally Hawker Beechcraft said: ‘You need to move now or we kill the deal,” says one person familiar with negotiations.

Hawker will close if no bids are received, with the company effectively choosing Option A from the presentation handed-in to the bankruptcy court in July (see below).

One potential buyer for Hawker would be Kenn Ricci’s Nextant
Aerospace – which upgrades Hawker 400 aircraft. Its bid for Hawker assets
in the first round. We estimate that as the Hawker plant is furloughed
it would take 12 months to restart Hawker production.

The company is now looking to exit Chapter 11 in the first quarter of 2013 (it had hoped for December 2012). The majority of the company’s secured bank debt and unsecured bond debt, have already agreed to support the terms of the plan. It says Debtor-in-Poessesion (DIP) lenders will be fully repaid. The company has enough cash to complete its restructuring and expects to extend DIP.