Hawker, Now 'Beechcraft,' Emerges From Chapter 11 Bankruptcy

Hawker Beechcraft said Tuesday that it has emerged from Chapter 11 bankruptcy, calling itself "Beechcraft" and claiming it is stronger and more financially stable.

In a statement (PDF), the company said its joint plan of reorganization had been approved by the U.S. Bankruptcy Court for the Southern District of New York on Feb. 1 and became effective on Friday.

"Today marks the rebirth of an 80-year-old American aircraft manufacturing business with a globally recognized brand," Bill Boisture, Beechcraft's CEO, said in a news release. "Beechcraft has emerged from this process a stronger company with both financial and operational strength and stability. We have a strong line of versatile and globally renowned products like the King Air turboprop and the T-6 military trainer aircraft, and the largest global customer support network in the industry.

"Our highly skilled and dedicated work force is focused on building aircraft of exceptional quality and reliability. With these elements as our foundation for the future, we will compete worldwide and we will win," he said.

Boisture, who was chairman of Hawker Beechcraft, will be on the board of the new Beechcraft. Robert Johnson is its new chairman.
Hawker, which filed Chapter 11 in May, announced in November that it will close its Hawker Beechcraft Services facility in Little Rock and reduce its remaining workforce. The company employed 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 ultimately scrapped.
Looking ahead, Beechcraft says it will 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."
On Tuesday, Nicole Alexander, a Beechcraft spokeswoman, said Beechcraft still has a "small number of people" working at the Little Rock completions center. She said the company is pursing a sale of its Hawker assets, "which could include that facility if the buyer is interested."
Hawker Beechcraft has occupied 247,500 SF of hangar and office space at Adams Field. Through an agreement that ends in 2037, the Bill and Hillary Clinton National Airport receives $587,626.05 per year from Hawker for the use of land and buildings at Adams Field.

For its post-Chapter 11 business, Beechcraft received $600 million in permanent financing, including a $425 million term loan facility and a $175 million revolving facility. The company said part of the term loan facility was used to repay the company's debtor-in-possession credit facility and to satisfy certain settlement and cure costs payable under the organization plan. The remainder, together with the revolving facility, is funding ongoing operations.