A U.S. bankruptcy judge has approved Hawker Beechcraft’s Chapter 11 reorganization plan, clearing the way for the company to restart operations under the name Beechcraft within the next few weeks.
“Today's ruling marks the final significant step in the restructuring process,” said Robert S. Miller, Hawker Beechcraft CEO. “Throughout this process, we have been guided by the goal of emerging in a strong operational and financial position, with an enhanced ability to compete well into the future. Our recapitalization and dramatically reduced debt load will allow us to do exactly that.”
Hawker Beechcraft is changing the company’s name to Beechcraft Corp. as part of its reorganization plan as it focuses its business on its turboprop, piston, special mission and trainer/attack aircraft.
The court earlier approved a pension plan agreement with the International Association of Machinists. The company estimates that nearly all plan participants will see “the full amount of normal retirement pension benefits that have already vested.”
The company has retained J.P. Morgan and Credit Suisse to arrange $600 million in exit financing. Once it emerges from bankruptcy, Hawker Beechcraft Chairman Bill Boisture will become CEO and Miller will remain as a senior advisor.