Hawker Beechcraft opts to pay interest in kind on 8 7/8%/9 5/8% notes

By Jennifer Chiou

New York, March 30 - Hawker Beechcraft Acquisition Co., LLC elected to pay interest in kind on its 8 7/8%/9 5/8% senior pay-in-kind election notes due 2015 in lieu of making cash interest payments, according to an 8-K filing with the Securities and Exchange Commission.

This applies to the interest period ending on Oct. 1, the company said, adding that this is a prudent method to enhance liquidity in the second half of the year.

In connection with this election, on March 30, the company delivered notice to Deutsche Bank National Trust Co., as trustee, that it will pay the PIK interest rate of 9 5/8%.

Hawker Beechcraft is a Wichita, Kan., manufacturer of business jet, turboprop, piston-driven and military training aircraft.

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