With its official emergence from bankruptcy today, the new Beechcraft Corp. returns to the roots planted by founders Walter and Olive Ann Beech in 1932. After nearly 10 months under Chapter 11 protection and the approval of its reorganization plan earlier this month by the bankruptcy court, the aircraft manufacturer has permanently shut down business jet production and from now on will be “focused on our light pistons, civil and military turboprops and our global customer service,” said Beechcraft CEO Bill Boisture.
Beechcraft’s product portfolio consists of the King Air C90GTx, 250 and 350i turboprop twins, Bonanza G36 piston single and Baron G58 piston twin, as well as the T-6 military trainer and multi-role/light attack AT-6. The Global Customer Service division includes the company’s worldwide network of 80 authorized service centers and 10 factory-owned centers. Those centers will also be continuing the Hawker 400XPr and 800XPr upgrade programs.
Elaborating on Beechcraft’s solvency as it emerges from bankruptcy, Boisture said the $2.2 billion coming in has been converted to equity and is in the hands of the secured lenders. The fully committed $600 million in exit financing is a combination, he explained, of term debt and revolving credit. The term debt will be drawn down to pay court-approved claims and what remains will go toward operating capital.