Hawker Beechcraft USA Files for Bankruptcy...

[Ex FSO GRIFFO]

A 'Breaking News' rec'd from AVweb this morning (WST)...

Hawker Beechcraft Thursday announced that it has filed for Chapter 11 bankruptcy protection, having entered agreements to eliminate $2.5 billion in debt and securing financing that will allow it to pay its employees, for now. Last year, Hawker lost over $600 million, but company officials remain publicly optimistic about the viability of the company. "Restructuring our balance sheet and recapitalizing the company in partnership with our debt holders will dramatically improve Hawker Beechcraft's ability to compete in a rapidly changing environment," CEO Robert Miller said in a statement. Restructuring won't just impact Hawker, which last week announced 350 layoffs, but will also impact suppliers. The company says it will continue to operate "in the normal course of business" and fill all orders for available products.

The company will now work to restructure its balance sheet and recapitalize. It will continue with its bid to win a Light Air Support contract from the U.S. Air Force for its AT-6. Hawker says that more than two-thirds of its bank and senior bond debt holders have given support to its prearranged restructuring plan. If the court confirms the company's reorganization and consummates the plan, equity ownership in Hawker will be transferred to the company's debt holders. The company is currently headquartered in Wichita, with operations in Arkansas, England, and Mexico. It owns 100 authorized service centers worldwide.

Hope this does not affect the AUS ops too much.....

:ok:

[aussie027]

This was expected, news re company's financial difficulties have been around in certain publications for many months.
Hopefully they will get restructured and continue production for many years to come.
Given military and civilian production and all their service and maintenance work it is hard to imagine they got into that much debt.

[Howard Hughes]

It will continue with its bid to win a Light Air Support contract from the U.S. Air Force for its AT-6.
Thought this was already awarded to Embraer and that is the reason for some of Beechcrafts woes.

[Flyingblind]

I think the writing has been on the wall for HB for a while, they have not introduced any new platforms to the market for some while. The recent additions to the B300/B350 fleet have not expanded their product line nor their appeal to the market for some time.

I think they have been fighting a rear guard action since the introduction of the B1900D.

[mattyj]

Try the 10 year battle to get the 4000 certified then trying to market them during the gfc! Cost a motza..if they had kept the 1900 going (20 seaters aren't made anymore by anyone!) and upgraded the avionics and got the pricing realistic for their product lines ..etc etc..

[Typhoon650]

I hope this doesn't mean an end to $600+ aircraft operating handbooks!:}

[TBM-Legend]

Hawker Pacific will take a hit I guess.

[Wanderin_dave]

Is the CEO a doctor? Revenge for lost colleagues?