The U.S. Bankruptcy Court for the Southern District of New York has granted approval of Hawker Beechcraft’s “First Day Motions” as part of the company’s voluntary filing for reorganization under Chapter 11. Approval of these motions enables Hawker Beechcraft to continue to operate in the ordinary course of business during the reorganization process.
Among the first-day motions granted today, Hawker Beechcraft received approval to continue to pay employees, and to pay all vendors and suppliers in the ordinary course for goods and services delivered after the commencement of the Chapter 11 case. The company will use $400 million in Debtor-in-Possession (DIP) financing, negotiated as part of the prearranged restructuring, to make payroll and pay bills, company officials said.
On May 3, Hawker Beechcraft and a number of its senior secured lenders and senior bondholders agreed to the terms of a financial restructuring plan that will eliminate approximately $2.5 billion in debt and approximately $125 million of annual cash interest expense, officials added.
For more information: HawkerBeechcraft.com
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