Hawker Beechcraft has 120 additional days to file its plan to emerge from bankruptcy. The U.S. Bankruptcy Court for the Southern District of New York granted Hawker Beechcraft’s request for more time last week and officially signed and filed the order today (Sept. 4).
Hawker Beechcraft originally hoped to emerge from bankruptcy before yearend. But the company now has until the end of the year before it files its reorganization plan and two months after that for confirmation of that plan. Under that scenario, it could be late winter/early spring before Hawker Beechcraft fully emerges from bankruptcy.
The company had asked for the time, saying it still has yet to determine its best path forward and needs the time to fully explore its options. Hawker Beechcraft has been looking at two possible means to emerge – either as a standalone owned by its primary creditors or by a third-party, right now presumably Superior Air Beijing.
The company may present the plan as a standalone sooner as it continues negotiations with Superior Air Beijing. Hawker Beechcraft says it is making “substantial” progress on both potential transactions but it has “not yet determined which course of action will ultimately produce the highest otherwise best results.”
In the interim, though, Superior Air Beijing has provided funding to help keep certain production lines operating. Hawker’s latest finance report filed – for July – shows the company posting small gross profit, but overall losses including taxes, interest expenses and the ongoing reorganization costs.