Hawker Beechcraft reorganization plan gets court's OK
BY ROXANA HEGEMAN Associated Press
Saturday, February 02, 2013
2/02/13 at 5:19 AM
WICHITA - A federal judge gave the final nod Friday to Hawker Beechcraft's reorganization plan, clearing the way for the plane-maker to exit bankruptcy later this month.
Bankruptcy Judge Stuart Bernstein ruled Friday that the reorganization plan complied with the requirements of the bankruptcy code, finding the company proposed the plan in good faith to maximize the value of the estate and carry out the reorganization. The judge also said the plan satisfied the "best interest of creditors" test required under the law.
The 39-page ruling comes one day after a confirmation hearing in New York in which Bernstein made clear that he was close to signing off on a reorganization plan that will preserve thousands of jobs.
The slimmed-down company will be renamed Beechcraft Corp. and will shed the struggling business jet operations. It will focus on more profitable turboprop, piston, special mission and military aircraft, as well as its parts, maintenance, repairs and refurbishment business.
The Wichita-based company has secured an underwriting commitment for $600 million in exit financing consisting of a term loan and revolving line of credit from JPMorgan Chase Bank and Credit Suisse.
"Beechcraft Corp. will emerge from this process as the world's leading designer and manufacturer of turboprop, piston and trainer/attack aircraft with the largest global customer support network in the industry," said Bill Boisture, chairman of Hawker Beechcraft Corp.
Under the reorganization plan, secured bank debt incurred before the bankruptcy as well as unsecured bond debt and certain general unsecured claims will be canceled, with those creditors receiving equity in the reorganized company.
Original Print Headline: Hawker Beechcraft reorganization plan gets OK