Hawker Beechcraft disclosure approved; plan hearing set for Jan. 31

By Caroline Salls

Pittsburgh, Dec. 5 - Hawker Beechcraft, Inc. said the U.S. Bankruptcy Court for the Southern District of New York approved the disclosure statement for its plan of reorganization on Wednesday.

According to a company news release, Hawker Beechcraft's plan is supported by its official committee of unsecured creditors and holders of a majority of the obligations under its pre-bankruptcy credit facility and senior unsecured bonds.

The company said the plan voting process will be completed by Jan. 22, and the confirmation hearing is scheduled for Jan. 31.

Plan details

Under the company's amended plan, pre-bankruptcy secured bank debt, unsecured bond debt and general unsecured claims will be canceled.

Holders of those claims will receive equity in the reorganized company in the percentages negotiated by the major creditor groups at the time Hawker Beechcraft filed for bankruptcy.

To preserve the debtors' corporate structure, intercompany claims may be reinstated or, at the reorganized debtors' option, be cancelled or compromised, and no distribution will be made on account of those intercompany claims.

To the extent not otherwise transferred by Hawker Beechcraft or the reorganized company, intercompany interests will be reinstated.

All Hawker Beechcraft interests will be extinguished under the plan and holders will receive no distribution.

Looking ahead

Upon its emergence from Chapter 11, Hawker Beechcraft said it plans to enter into a new financing facility of at least $525 million, consisting of a term loan and a revolving line of credit.

The financing will be used to repay the company's debtor-in-possession credit facility, issue letters of credit to replace the DIP facility and fund ongoing operations, the release said.

As part of its reorganization, the company said it will rename itself Beechcraft Corp. and implement a business plan that focuses on its turboprop, piston, special mission and trainer/attack aircraft and on its parts, maintenance, repairs and refurbishment businesses.

Hawker Beechcraft is a Wichita, Kan.-based manufacturer of business, special mission, light attack and trainer aircraft. The company filed for bankruptcy on May 3 under Chapter 11 case number 12-11873.

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