Hawker Beechcraft: court approves capped exit expenses, property sale

By Lisa Kerner

Charlotte, N.C., Nov. 29 - Hawker Beechcraft, Inc. was granted court approval to pay work fees and expenses incurred by potential exit financing lenders, according to documents filed Thursday 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.

As previously reported, 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.

At the time the request was filed, Hawker Beechcraft was in the process of seeking sources of exit financing.

Also on Thursday, the court approved Hawker Beechcraft's $2.93 million sale of its Sedgwick County, Kan., property to the City of Wichita, Kan., along with a temporary construction easement and permanent drainage easement.

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

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