Hawker Beechcraft plaintiffs say their claim is non-dischargeable debt

By Jim Witters

Wilmington, Del., Sept. 27 - The plaintiffs in a U.S. District Court action against Hawker Beechcraft, Inc. say their claim is a non-dischargeable debt and are seeking the bankruptcy court's agreement, according to documents filed Sept. 27 with the U.S. Bankruptcy Court for the Southern District of New York.

They are seeking $763 million in damages on behalf of the U.S. government and $3.8 million for themselves.

False Claims case

Kansas residents Donald Minge and David Kiehl filed a False Claims Act lawsuit against Hawker Beechcraft in the U.S. District Court for the District of Kansas five years ago.

The False Claims Act allows individuals to bring civil actions in the name of the federal government.

Hawker Beechcraft contracted with the federal government for the purchase of King Air and military T-6A aircraft.

Minge and Kiehl, who are former employees of a Hawker Beechcraft subcontractor, say that Hawker Beechcraft made false statements and misrepresentations in the sale of those aircraft and in a claim for payment.

They allege that TECT Aerospace Wellington, Inc. did not "manufacture parts with repeatable processes and did not subject their processes to rigorous quality control and inspection," as required under the government contract.

Hawker Beechcraft knew of the deficiencies, but "ignored its affirmative duty to disclose any manufacturing practices that departed from specifications," the court filing states.

The federal government stopped accepting the T-6A aircraft in 2007 and the Federal Aviation Administration fined Hawker Beechcraft more than $2.5 million for its failure to disclose the discrepancies, according to Minge and Kiehl.

The Kansas lawsuit alleges that Hawker Beechcraft certified the manufacturing process of more than 347 planes sold to the federal government, even though the process did not meet government standards.

The government must pay to "re-wing" all of the planes.

No hearing has been scheduled on the motion.

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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