Hawker Beechcraft, Inc. announced Friday that the key creditors voting in the company's solicitation process have overwhelmingly approved its proposed Joint Plan of Reorganization.
The company also announced that J.P. Morgan Securities LLC and Credit Suisse Securities (USA) LLC have agreed to act as joint lead arrangers and joint bookrunners to structure, arrange and syndicate $600 million in exit financing, consisting of a term loan and a revolving line of credit. The financing will be used to repay all claims under the debtor-in-possession post-petition credit facility, pay certain settlement and cure payments and fund ongoing operations.
Robert Miller, CEO of Hawker Beechcraft, Inc., said, "The tremendous show of support of our creditors for the plan, which will dramatically reduce Hawker Beechcraft's debt load, and the financing commitment from J.P. Morgan and Credit Suisse mark an important milestone for the company as it moves closer to emerging from the restructuring process."
Bill Boisture, chairman of Hawker Beechcraft Corp., said, "The reorganized Beechcraft Corp. will emerge from this process in a strong operational and financial position, with the working capital and flexibility to execute a strategy built around our core products like the world-renowned King Air twin engine turboprop and the T-6 military training aircraft, which will enable the company to compete well into the future." The company recently received a $22.6 million firm-fixed-price contract modification to support the Government of Iraq T-6A sustainment program at Tikrit Air Base.
Hawker Beechcraft will seek approval from the court to exit bankruptcy at the confirmation hearing scheduled for Jan. 31 and expects to emerge from Chapter 11 in the second half of February. A new Board of Directors, to be appointed by the new owners of the company, will take over on the date of emergence.
Hawker Beechcraft is a world-leading manufacturer of business, special mission, light attack and trainer aircraft. The company's headquarters and facilities are located in Wichita, Kan., with operations in Little Rock, Ark.; Chester, England, U.K.; and Chihuahua, Mexico.
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