Hawker Beechcraft plan effective Feb. 15; new name Beechcraft Corp.

By Caroline Salls

Pittsburgh, Feb. 15 - Hawker Beechcraft, Inc.'s plan of reorganization took effect on Friday, according to a filing with the U.S. Bankruptcy Court for the Southern District of New York.

As part of its reorganization, the company intends to rename itself Beechcraft Corp. and implement a business plan that focuses on its turboprop, piston, special mission and trainer/attack aircraft and on its parts, maintenance, repairs and refurbishment businesses.

Under the plan, the company's pre-bankruptcy secured bank debt, unsecured bond debt and some general unsecured claims will be canceled and holders will receive equity in the reorganized company in percentages negotiated by the major creditor groups at the time Hawker Beechcraft filed bankruptcy.

To preserve the debtors' corporate structure, intercompany claims may be reinstated or, at the reorganized debtors' option, be cancelled or compromised, and no distribution will be made on account of those intercompany claims.

To the extent not otherwise transferred by Hawker Beechcraft or the reorganized company, intercompany interests will be reinstated.

All Hawker Beechcraft interests will be extinguished under the plan and holders will receive no distribution.

As previously reported, the company obtained a commitment for $600 million in exit financing from JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC.

The financing includes a seven-year term loan and a five-year asset-based revolving credit facility.

Proceeds will be used to pay all outstanding amounts under the company's $400 million debtor-in-possession facility, to make specified settlement and cure payments, and for working capital and general corporate purposes.

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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