At an omnibus hearing on December 11, the progress of Hawker Beechcraft toward emerging from Chapter 11 bankruptcy protection moved ahead with court authorization to enter into the debtor-in-possession (DIP) amendment and to pay certain related fees and expenses.
Noting that any objections to the relief requested by Hawker Beechcraft had been withdrawn or overruled and that it was “in the best interests of the debtors’ estates, their creditors and other parties in interest,” Judge Stuart Bernstein approved the motion “in all respects.”
At the same hearing, the court authorized Hawker Beechcraft’s sale of its remaining inventory of 20 Hawker 4000s (16 new and four used). According to Hawker Beechcraft, the total value of the inventory is approximately $400 million.
The Wichita OEM, in the face of opposition by a substantial number of Hawker 4000 owners, had asked the court to grant a motion allowing it to sell 20 of the airplanes in its inventory, “for the best price possible, on an ‘as-is-where-is’ basis, with no warranty or support commitments.”
An ad hoc committee of Hawker 4000 owners had filed an objection to the sale, particularly a sale without warranty or support. Two other objections for a sale without warranty or support by Elegant Aviation and Pace Aviation were withdrawn before the court decision.
Piston and Turboprop Future
Early in the restructuring process, Hawker Beechcraft announced its intention to cease production of the Hawker 4000 and 900XP and the Premier IA and exit the business of building and selling jets.
According to Hawker Beechcraft chairman Bill Boisture, the company is moving ahead and expects to emerge from bankruptcy in mid-February as the Beechcraft Corporation and focus on its turboprop and piston aircraft lines.
In its Aerospace and Defense: Balance of Power report last month, JP Morgan suggested that “acquisition of the company is still possible.” The financial services company named Embraer, Textron (parent of Cessna and Bell) and General Dynamics (Gulfstream and Jet Aviation) as companies that might benefit from such a deal.