Hawker Beechcraft is hoping that it is just a few days from receiving court confirmation for its reorganization plan, a move that clears the way for the company to exit Chapter 11 bankruptcy protection. Once it emerges in mid- to late February, the company will have a new name (Beechcraft Corp.), new owners (its major debt holders) and a new yet-to-be-named board of directors. It also will have a reshaped product line that is focused on turboprops and pistons.
As expected, the company’s plan received “overwhelming” approval for the proposed joint plan for reorganization. The plan must now receive court confirmation. A hearing for this is scheduled Jan. 31.
But there are still a few outstanding issues that the court also must deal with during that Jan. 31 hearing. These include Hawker Beechcraft’s proposal to secure $600 million in “exit” financing, the company’s agreement with the Pension Benefit Guaranty Corp. to drop two of its three major pension plans, and its proposed $7.5 million cure payment to Pilatus to settle a royalties dispute over the production of the T-6/AT-6 trainer.