Another step toward Hawker Beechcraft emerging from Chapter 11 bankruptcy came yesterday when it received court authorization to sell its remaining inventory of Hawker 4000s. As part of its reorganization plan as a standalone company, Hawker Beechcraft is shutting down its business jet line and intends to sell 20 Hawker 4000s “for the best price possible, on an ‘as-is-where-is’ basis, with no warranty or support commitments.”
The approval included a number of terms, among them requirements that Hawker Beechcraft consult with the ad hoc committee of senior secured lenders and ad hoc committee of senior note-holders, and that all sales and transfers of the Hawker 4000 inventory be free and clear of all liens. A large number of Hawker 4000 owners had earlier filed protests with the court, objecting to a sale that might devalue aircraft now in service and to the company’s decision to do so without warranty or support commitments.
Also yesterday, judge Stuart Bernstein issued an order authorizing Hawker Beechcraft to enter into the debtor-in-possession (DIP) amendment and approved it “in all respects.” Meanwhile, Bernstein deferred a decision on Hawker Beechcraft’s request to terminate the maintenance contracts and remaining warranties for in-service Premier IAs and Hawker 4000s, asking for more information before he rules on the motion.