Hawker Beechcraft seeks approval to pay exit loan fees and expenses

By Caroline Salls

Pittsburgh, Nov. 16 - Hawker Beechcraft, Inc. requested court approval to pay work fees and expenses incurred by potential exit financing lenders, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The amount of fees and expenses to be paid will be capped. The maximum amount was filed under seal.

Hawker Beechcraft said its plan of reorganization calls for a roughly $525 million exit facility, which it expects to consist of a $275 million term loan and a $250 million revolving credit facility.

The company said the term loan will be used to repay its debtor-in-possession financing facility and the revolver will be used to fund ongoing operations and to issue letters of credit.

According to the motion, Hawker Beechcraft, with the help of its legal and financial advisers, is in the process of contacting numerous potential sources of exit financing. The company said it intends to engage in various levels of due diligence with those parties.

Hawker Beechcraft is a Wichita, Kan.-based manufacturer of business, special mission, light attack and trainer aircraft. The company filed for bankruptcy on May 3, 2012 under Chapter 11 case number 12-11873.

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