by Lance Turner
Posted 2/19/2013 08:45 am
Updated 3 months ago
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.
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.