by Lance Turner
Posted 12/5/2012 03:34 pm
Updated 6 months ago
Hawker Beechcraft Inc. of Wichita, Kan., said Wednesday that the disclosure statement filed in its Chapter 11 bankruptcy plan has been approved by the U.S. Bankruptcy Court for the Southern District of New York.
The approval allows the aircraft manufacturer to begin soliciting approval of the plan from its creditors. The plan is already supported by the company's official committee of unsecured creditors, the company said in a news release.
The company plans to seek approval from the court to exit bankruptcy at a confirmation hearing scheduled for Jan. 31.
"Upon its emergence from Chapter 11, the company plans to enter into a new financing facility of at least $525 million, consisting of a term loan and a revolving line of credit, that will be used to repay the debtor-in-possession post-petition credit facility, issue letters of credit to replace the DIP and fund ongoing operations," the company said.
The Wichita Eagle said the New York judge approved millions of dollars in fees and expenses charged to Hawker for legal and other professional services related to its bankruptcy case. But the judge took some money off the legal bills.
Hawker, which filed Chapter 11 in May, announced last month that it will close its Hawker Beechcraft Services facility in Little Rock and reduce its remaining workforce. The company employs about 280 people at Adams Field in Little Rock, where it finishes out its line of private jets.
That operation would have been included in the sale to Superior Aviation, which the companies scrapped last month. Now, Hawker plans to emerge from bankruptcy under the name "Beechcraft Corporation" and focus on its profitable turboprop, piston, special mission and trainer/attack aircraft businesses. It had said it might sell "some or all" of its other product lines, or close its "entire jet business if no satisfactory bids are received."