A judge in New York has said he will approve most of the reorganisation plan for Hawker Beechcraft that will see the company emerge from Chapter 11 bankruptcy protection. A judgement on subsidiary Hawker Beechcraft Corporation has been reserved, pending some modification.
JP Morgan Securities LLC and Credit Suisse Securities (USA) LLC have agreed to act as joint lead arrangers and bookrunners to structure, arrange and syndicate US$600 million in exit financing, consisting of a term loan and a revolving line of credit.
The finance will be used to repay certain claims and fund ongoing operations.
Robert S. “Steve” Miller, CEO of Hawker Beechcraft, Inc., said, “The tremendous show of support of our creditors for the Plan, which will dramatically reduce Hawker Beechcraft’s debt load, and the financing commitments from JP Morgan and Credit Suisse mark an important milestone for the company as it moves closer to emerging from the restructuring process.”
Bill Boisture, Chairman of Hawker Beechcraft Corporation, said, “The reorganized Beechcraft Corporation will emerge from this process in a strong operational and financial position, with the working capital and flexibility to execute a strategy built around our core products like the world-renowned King Air twin engine turboprop and the T-6 military training aircraft, which will enable the company to compete well into the future.”
No solution for the jet business has been announced.
Beechcraft is expected to finally emerge from Chapter 11 in the second half of February.