Hawker Beechcraft announced that the Disclosure Statement filed in connection with the company’s Joint Plan of Reorganization (POR) has been approved by the U.S. Bankruptcy Court for the Southern District of New York.
Court approval of the adequacy of the Disclosure Statement allows Hawker Beechcraft to begin soliciting approval of the POR from its creditors. The POR is supported by the Official Committee of Unsecured Creditors, and holders of a majority of the obligations under the company’s prepetition credit facility and senior unsecured bonds have also committed to support it.
The voting process will be completed by Jan. 22, 2013, and the company will seek approval from the court to exit bankruptcy at the confirmation hearing scheduled for Jan. 31, 2013.
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 (DIP) post-petition credit facility, issue letters of credit to replace the DIP and fund ongoing operations.
As part of its reorganization, the company intends to rename itself Beechcraft Corporation and implement a business plan that focuses on its turboprop, piston, special mission and trainer/attack aircraft and on its parts, maintenance, repairs and refurbishment businesses.
Hawker Beechcraft’s legal representative is Kirkland & Ellis, its financial advisor is Perella Weinberg Partners and its restructuring advisor is Alvarez & Marsal. The Ad Hoc Committee of Senior Secured Lenders’ legal representative is Wachtell Lipton Rosen & Katz. Credit Suisse serves as agent for the lenders under Hawker Beechcraft’s secured pre-petition and DIP credit facilities. Credit Suisse’ legal representative is Sidley Austin and its financial advisor is Houlihan Lokey. The Unsecured Creditors Committee’s legal representative is Akin Gump Strauss Hauer & Feld and its financial advisor is FTI Consulting.
Hawker Beechcraft is a manufacturer of business, special mission, light attack and trainer aircraft – designing, marketing and supporting aviation products and services for businesses, governments and individuals worldwide.
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