Judge Denies Expedited Sale of Hawker 4000s
A bankruptcy judge declined to sign an order yesterday allowing Hawker Beechcraft to expedite the sale of approximately 13 new, three in-production and four used Hawker 4000 business jets. On November 16, the company had asked for court authorization of the sale “for the best price possible under the circumstances, on an ‘as-is-where-is’ basis, with no warranty or support commitments.”
The filing further noted that HBC expected the sale price of the remaining Hawker 4000 airplanes “will be at a substantial discount,” and that the value of the 20 aircraft will continue to decline as competitors introduce new aircraft. Yesterday’s decision by Judge Stuart Bernstein was in response to a subsequent objection filed by an ad hoc committee of Hawker 4000 customers, protesting the HBC request for an expedited hearing.
“Any urgency that might exist is of [Hawker Beechcraft’s] own making,” the customer group said. It further asserted that the ordinary retail value of the airplanes is approximately $20 million each, which “is not immaterial surplus property that should be sold on accelerated notice.”
The committee’s filing further urged HBC to continue developing an ongoing service and support system for the Hawker 4000, saying that by doing so, in would generate in prospective Hawker 4000 customers confidence that should help to increase the value of the remaining inventory of aircraft. A hearing on the HBC request for liquidation of the Hawker 4000 inventory is now scheduled for November 29.