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Hawker Beechcraft gets OK to liquidate jet inventory

By: Molly McMillin
View the full article: The Wichita Eagle


A bankruptcy judge ruled Tuesday that Hawker Beechcraft may move forward with the sale of its remaining Hawker 4000 business jet inventory.

The move comes three weeks after the judge rejected the company’s request to expedite the sale of Hawker 4000 inventory, saying Hawker Beechcraft shouldn’t race to abandon the assets and sell them at substantial discounts.

The company has 20 Hawker 4000s in its inventory with a retail value of $20 million each, it said in a November court filing. That includes 13 new Hawker 4000s, three in production and four used planes.

An ad hoc committee of Hawker 4000 owners protested the sale with the court last month, saying that rather than hasten the process, sales should move forward in a measured, responsible way to maximize their value.

Hawker Beechcraft filed for Chapter 11 bankruptcy protection May 3.

Hawker Beechcraft must maintain information about each Hawker 4000 sale, including the serial number, name of the buyer and the purchase price, which must be provided to the U.S. Trustee and advisers monthly, the judge said in his ruling Tuesday.

The company said in late October that it was discontinuing the warranties on Hawker 4000 and Premier 1 and 1A business jets as well as its extended service contracts on the two planes.

It’s also discontinuing its agreements to upgrade and enhance the Hawker 4000s.

Hawker 4000 owners, in response, have hired attorneys to protect their interests.

Hawker Beechcraft has said it plans to exit its jet business after emerging from bankruptcy early next year.

After talks to sell the company, except for its defense business, to Superior Aviation Beijing broke down, Hawker Beechcraft said it planned to emerge from bankruptcy as a smaller, stand-alone company called Beechcraft Corp. The reorganized company will focus on the King Air, Baron and Bonanza lines and defense and after-market business.

Beechcraft King Air 350ER Sets Speed Record

Article by: www.aero-news.com
Flight Covered 1,681 Nautical Miles At 276.03 MPH

The National Aeronautic Association (NAA) has recognized Hawker Beechcraft Corporation (HBC) for a new speed record set by its Beechcraft King Air 350ER. Jonathan Gaffney, President of the NAA, awarded the company with the official certificate at the 2012 NBAA annual convention in Orlando.

HBC’s Multi-Mission Beechcraft King Air 350ER demonstrator aircraft set the record for “Speed Over a Recognized Course” during a Sept. 11 flight at 276.03 miles per hour from Luxor, Egypt to Nairobi, Kenya. It is a new world record, sanctioned by both the NAA and the Federation Aeronautique International (FAI) in Switzerland.

“This speed record, along with the successful world tour of the demonstrator, verifies the high performance, flight characteristics and versatility of the King Air 350ER and our commitment to the worldwide special mission market,” said Dan Keady, senior vice president, Special Missions.

The record setting flight covered 1,681 nautical miles and consumed 3,770 lbs. of fuel, about 73 percent of the total usable fuel capacity of 5,192 lbs. While this record-setting flight was done with the external configuration of a surveillance aircraft (with radome and strakes installed), in a standard King Air 350ER with the slick interior (ready for mission equipment and mission modifications) that same flight would leave 3,510 lbs. of useful load for crew, mission equipment and fuel reserves. This range/payload demonstration is why the aircraft is so popular for special mission applications in the U.S. and around the world.

The demonstrator is on display at NBAA this week and in May of this year made its first appearance at the European Business Aviation Convention and Exhibition after completing a tour that covered 40,000 miles to 14 countries on five continents – all on schedule and without any unscheduled maintenance required.

The Multi-Mission Beechcraft King Air 350ER demonstrator aircraft is a standard extended-range airplane, which is capable of more than 12 hours endurance or more than 2,500 nautical mile range. The demonstrator has been fitted with a search radar radome with electro-optic/infrared (EO/IR) lift for surveillance missions, high density seating for military transport missions, and two medical sleds and a medical storage cabinet for air ambulance missions. All of these installations are certified by the Federal Aviation Administration and European Aviation Safety Agency, and available for immediate delivery on new aircraft from the factory.

FMI: www.hawkerbeechcraft.com

Hawker Beechcraft Announces Intent To Emerge From Chapter 11 As Standalone Company

SOURCE: PR NEWSWIRE
PROVIDED BY: www.aviationpros.com
Hawker Beechcraft also announced that it is no longer pursuing a transaction with Superior Aviation Beijing Co., Ltd. (Superior) because the parties could not reach agreement on the terms of a Plan Sponsorship Agreement.

WICHITA, Kan., Oct. 18, 2012 /PRNewswire/ -- Hawker Beechcraft, Inc. (Hawker Beechcraft) today announced that it intends to emerge from Chapter 11 protection as a standalone company. Hawker Beechcraft also announced that it is no longer pursuing a transaction with Superior Aviation Beijing Co., Ltd. (Superior) because the parties could not reach agreement on the terms of a Plan Sponsorship Agreement.

Robert S. "Steve" Miller, CEO of Hawker Beechcraft, Inc., said, "We made the decision to proceed with the standalone Plan of Reorganization after determining that, despite our best efforts, the proposed transaction with Superior could not be completed on terms acceptable to the company. We are disappointed that the transaction did not come to fruition, but we protected ourselves by obtaining a $50 million deposit from Superior that is now fully non-refundable and property of the company. The go-forward business plan we have developed with our creditors ensures that we will emerge from this process in a strong operational and financial position, with an enhanced ability to compete well into the future."

Business Plan

Upon its emergence from Chapter 11, the company intends to rename itself Beechcraft Corporation and will implement a business plan that focuses on its turboprop, piston, special mission and trainer/attack aircraft – the company's most profitable products – and on its high margin parts, maintenance, repairs and refurbishment businesses, all of which have high growth potential.

Bill Boisture, Chairman of Hawker Beechcraft Corporation, said, "Beechcraft Corporation will emerge as the world's leading designer and manufacturer of turboprop, piston and trainer/attack aircraft with the largest global customer support network in the industry. Our business strategy will focus on growing our key existing product lines: high performance single and twin engine piston and turboprop aircraft, uniquely missionized variants for the global special mission market, and multi-role light attack and trainer aircraft systems as well as the product development opportunities within these segments."

As part of this plan, the company, in consultation with its key creditor constituents, is evaluating its strategic alternatives for the Hawker product lines, which could include a sale of some or all of those product lines, or a closure of the entire jet business if no satisfactory bids are received.

Plan of Reorganization

Hawker Beechcraft will soon file an amended Joint Plan of Reorganization (POR) with the U.S. Bankruptcy Court for the Southern District of New York. The company will also file an amended Disclosure Statement that describes the details of the proposed POR. The company intends to schedule a hearing on the adequacy of the Disclosure Statement on Nov. 15, 2012.

Hawker Beechcraft's key economic stakeholders, including holders of a significant majority of the company's secured bank debt and unsecured bond debt, have already agreed to support the primary terms of the POR subject to Bankruptcy Court approval of the amended Disclosure Statement. Under the POR, pre-petition secured bank debt, unsecured bond debt, and general unsecured claims will be canceled and holders of such claims will receive equity in the reorganized company in the percentages negotiated by the major creditor groups at the time the company commenced its Chapter 11 proceedings.

The POR contemplates that Hawker Beechcraft's $400 million debtor-in-possession (DIP) post-petition credit facility will be repaid fully in cash. In addition, the company will enter into a new financing package that will go into effect upon its emergence from Chapter 11.

The company has more than sufficient liquidity to complete its restructuring and expects to enter into an extension of its DIP post-petition credit facility, the maturity date of which would coincide with its anticipated emergence from Chapter 11 in the first quarter of 2013. Court approval of the adequacy of the Disclosure Statement will allow Hawker Beechcraft to begin solicitation of votes for confirmation of the POR.

Hawker Beechcraft's legal representative is Kirkland & Ellis LLP; its financial advisor is Perella Weinberg Partners LP; and its restructuring advisor is Alvarez & Marsal. The Ad Hoc Committee of Senior Secured Lenders' legal representative is Wachtell Lipton Rosen & Katz. Credit Suisse serves as agent for the lenders under Hawker Beechcraft's secured pre-petition and DIP credit facilities. Credit Suisse' legal representative is Sidley Austin LLP and its financial advisor is Houlihan Lokey. The Unsecured Creditors Committee's legal representative is Akin Gump Strauss Hauer & Feld LLP and its financial advisor is FTI Consulting, Inc.

This release is not intended as a solicitation for a vote on the POR.

Hawker Beechcraft is a world-leading manufacturer of business, special mission, light attack and trainer aircraft – designing, marketing and supporting aviation products and services for businesses, governments and individuals worldwide. The company's headquarters and major facilities are located in Wichita, Kan., with operations in Little Rock, Ark.; Chester, England, U.K.; and Chihuahua, Mexico. The company leads the industry with a global network of more than 100 factory-owned and authorized service centers. For more information, visit www.hawkerbeechcraft.com.

Media contact:
Nicole Alexander
+1.316.676.3212
[email protected]
www.hawkerbeechcraft.com
Twitter: @HBCnews

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