Hawker Beechcraft Files for Chapter 11

Hawker Beechcraft Inc. of Wichita, Kan., has filed for Chapter 11 bankruptcy protection, and it’s yet unknown how that will affect the company’s 450 Arkansas employees.

The Associated Press reported the aircraft company’s bankruptcy filing on Thursday, citing "crushing debt."

According to a press release, the filing coincides with the company’s plan to eliminate some $2.5 billion of debt and $125 million of annual cash interest expense.

The plan includes a commitment from the company’s senior lender group to provide $400 million in DIP financing, allowing Hawker Beechcraft to "pay its suppliers and vendors, and for other corporate purposes."

The release states that Hawker Beechcraft will continue to operate "in the normal course of business and serve its customers around the world."

Hawker Beechcraft appointed a new CEO, Robert S. "Steve" Miller in February. The company reported 2011 revenue of $2.4 billion, down from $2.8 billion in 2010, and employs 6,000 workers total.

According to Arkansas Business’ survey last month, Hawker Beechcraft was the third-largest aerospace company in the state by employee count.