Report: Hawker Beechcraft Bankruptcy Imminent

Move attempts to turn troubled airframer around.

Hawker Beechcraft

Hawker Beechcraft

Just days after announcing it has struck a deal with creditors to avoid defaulting on its loans, Hawker Beechcraft is said to be preparing for a "prearranged" bankruptcy filing, expected in the coming weeks, according to a Reuters news report.

Hawker Beechcraft on Tuesday said it is negotiating with its largest lenders and has received a $120 million loan to keep its factories open. The next move, if the reports are true, would likely include additional financing to allow Hawker to continue to operate in bankruptcy, according to the Reuters news story.

Hawker Beechcraft CEO Steve Miller said in a statement released this week that the company has been struggling with a debt load that is making it difficult for the Wichita airframer to stay afloat. “We believe this agreement will stabilize the company’s current financial position,” he said of the loan agreement.

Hawker Beechcraft's board of directors in February hired Miller, who is highly regarded for his ability to turn around financially troubled companies.