Hawker Beechcraft will not exit bankruptcy by year-end as originally projected, if the court allows the Wichita-based aircraft manufacturer’s request for a 120-day extension filed late Thursday. A court hearing on the extension request is scheduled for August 30.
In the filing, Hawker Beechcraft asked the U.S. Bankruptcy Court for the Southern District of New York, which is overseeing the bankruptcy case, to extend the period to file a Chapter 11 plan for each debtor through December 29 and the period to solicit acceptances of these plans through Feb. 27, 2013. This means the company would not emerge from bankruptcy until the spring.
Hawker Beechcraft argues that it needs extra time to “ensure [it has] an opportunity to complete [its] current plan process, thereby maximizing estate value for all stakeholders.” The aircraft manufacturer is currently in exclusive negotiations with Superior Aviation Beijing, which has placed a stalking-horse bid to buy Hawker Beechcraft for $1.79 billion. However, the company will ultimately be sold through a public auction process, so the Chinese firm is by no means guaranteed to be the eventual buyer.