Updated: HBC Bankruptcy 'Imminent' | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

Monday

Tuesday

Wednesday

Thursday

Friday

Airborne On ANN

Airborne 12.05.16

Airborne 12.06.16

Airborne 11.30.16

Airborne 12.01.16

Airborne 12.02.16

Airborne Hi-Def On YouTube

Airborne 12.05.16

Airborne 12.06.16

Airborne 11.30.16

Airborne 12.01.16

Airborne 12.02.16

Thu, Mar 29, 2012

Updated: HBC Bankruptcy 'Imminent'

Pre-Arranged BK With Primary Lenders Suggested

ANN RealTime Update, 032912, 0023 ET: A 'prearranged' bankruptcy may be imminent for Hawker Beechcraft, Inc. Owned by Goldman Sachs's private equity arm and Canada's Onex, media reports have been disseminated over the last few hours suggesting that the aircraft builder is preparing to file for bankruptcy protection -- but is doing so in consultation with its major lenders.

Hawker changed hands in 2007, and was purchased for $3.3B. Currently negotiating with it primary lenders, HBC hopes to pull off a managed bankruptcy with the aid of Centerbridge Partners, Angelo Gordon and Capital Research & Management. ANN is monitoring the situation and will report details as they become available.

Original Report: Hawker Beechcraft said Tuesday it has reached an agreement with certain lenders that will provide the company with approximately $120 million of additional liquidity through an incremental term loan facility under its existing credit facility. The company intends to use the proceeds of this loan to fund its ongoing operations as Hawker Beechcraft continues working with its lenders toward a comprehensive recapitalization.

As part of the agreement, lenders currently holding approximately 70 percent of Hawker Beechcraft bank debt have agreed to defer the company’s obligation to make certain interest payments on the company’s senior secured revolving and term loans when due, and have granted the company relief from certain existing loan covenants. This forbearance agreement is scheduled to expire on June 29, 2012.

Robert S. (Steve) Miller, CEO of Hawker Beechcraft, Inc., said, “Like others in the industry, Hawker Beechcraft has been impacted by the prolonged weakness in our markets. In the last three years the company has made aggressive transformational changes in all operational functions. While these steps have been effective, the company is operating with a debt load that is restricting its ability to succeed and fully execute on its strategy. We believe this agreement will stabilize the company’s current financial position and ensure Hawker Beechcraft continues manufacturing the best airplanes for our customers and providing first-class service and support. At the same time, the agreement provides Hawker Beechcraft and its lenders with additional time and flexibility to work together to recapitalize the company and better position Hawker Beechcraft for the future. We believe this loan demonstrates confidence in the long-term value of the company.”

FMI: www.hawkerbeechcraft.com

Advertisement

More News

Airborne 12.05.16: AutoGyro Certified, Police Seize Drone, GoPro Job Cuts

Also: Aldrin Evacuated, Shark US, Lufthansa, NASA, ESA's New Orbiter, FLIR Systems, Esterline The expression, “breaking news,” seems to be highly overused nowadays, but>[...]

ANN's Daily Aero-Linx (12.06.16)

Closing Santa Monica Airport: Something Does Not Add Up The latest update from the the Santa Monica Airport pointing out the reasons that the arguments for closing the airport "don>[...]

ANN's Daily Aero-Term (12.06.16): Clutter

In radar operations, clutter refers to the reception and visual display of radar returns caused by precipitation, chaff, terrain, numerous aircraft targets, or other phenomena.>[...]

Aero-News: Quote of the Day (12.06.16)

"Regardless of our appreciation of the public policy arguments raised by opponents, we have been advised that the law and our bilateral obligations leave us no avenue to reject thi>[...]

ANN FAQ: How To Get YOUR News Out On Aero-News

Good News, Bad News... It's ALL News As the preeminent online aviation news resource out there, the editorial staff at Aero-News sees a large number of news releases. We look at al>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2016 Web Development & Design by Pauli Systems, LC