The $1.79 billion deal for Superior Aviation Beijing to acquire bankrupt Hawker Beechcraft has been scrapped, the Wichita-based aircraft manufacturer announced this morning. As a result, Hawker Beechcraft now plans to emerge from bankruptcy protection in the spring as a standalone company focusing on its turboprop, piston, special-mission and trainer/attack aircraft, as well as parts, maintenance, repairs and refurbishment businesses. The company’s Hawker business jet lines will likely be sold–in whole or individually–or shut down, it added.
“We made the decision to proceed with the standalone plan of reorganization after determining that, despite our best efforts, the proposed transaction with Superior could not be completed on terms acceptable to the company,” said Hawker Beechcraft CEO Robert “Steve” Miller. “The go-forward business plan we have developed with our creditors ensures that we will emerge from this process in a strong operational and financial position, with an enhanced ability to compete [in] the future.”
Teal Group aerospace analyst Richard Aboulafia told AIN that the Superior bid “was a strange fishing expedition” from the start. “Now that it has reached its inevitable conclusion,” he said, “Hawker is back where it started, which means serious shrinkage in terms of product line, market share and overall industry presence.”