Hawker Beechcraft wins court approval of $1.9 million retention plan

By Caroline Salls

Pittsburgh, July 30 - Hawker Beechcraft, Inc.'s $1.9 million key employee retention plan (KERP) was approved Monday by the U.S. Bankruptcy Court for the Southern District of New York.

The company said the KERP covers 31 management-level non-insider employees who are vital to Hawker Beechcraft's business and reorganization. The KERP participants work in the company's operations, engineering, customer organization, finance, human resources and legal departments.

Hawker Beechcraft said each KERP participant will receive a lump-sum cash award payment upon either the effective date of a plan of reorganization, or the completion of a third-party transaction.

According to the motion, employees in the operations department will receive $855,000, or 45% of the KERP pool; employees in the customer organization department will receive $494,000, or 26% of the pool; employees in the finance department will receive $266,000, or 14% of the pool; employees in the engineering department will receive $171,000, or 9% of the pool; employees in the legal department will receive $76,000, or 4% of the pool; and employees in the human resources department will receive $38,000, or 2% of the pool.

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

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