Hawker Beechcraft has reached an agreement with lenders that will provide a $120 million loan as the company negotiates with creditors to avoid default.
Hawker Beech said it intends to use the proceeds of the loan to fund operations as it continues working with its lenders on broader recapitalization. The company in February named turnaround specialist Steve Miller as CEO after hiring Perella Weinberg Partners as a financial adviser in December. Miller has been seeking concessions from lenders to keep the company afloat.
“The agreement provides Hawker Beechcraft and its lenders with additional time and flexibility to work together to recapitalize the company,” Miller said in a statement.
Lenders currently holding approximately 70 percent of Hawker Beechcraft bank debt have agreed to defer the company’s obligation on interest payments. Goldman Sachs and Canada’s Onex Partners own Hawker Beechcraft, which has been particularly hard hit in the financial downturn.