Court Delays Decision On Hawker Beechcraft
With Hawker Beechcraft attempting to clear the final hurdle in Chapter 11 proceedings and emerge from bankruptcy, Judge Stuart Bernstein said earlier today that he would approve the joint plan of reorganization for all but one of the subsidiaries currently under Chapter 11 protection. Bernstein reserved judgment regarding the Hawker Beechcraft Corp. and asked the company to make a technical modification to the plan before he issues a final order that would allow the Wichita OEM to exit bankruptcy later next month.
The court approved Hawker Beechcraft’s agreement with the Pension Benefit Guaranty Corp. and International Association of Machinists to address its pension plans. Under terms of the agreement, the company estimates that 100 percent of union plan participants and more than 99 percent of non-union plan participants will receive the full amount of normal retirement pension benefits that are already vested. The company has reached a separate agreement to compensate those salaried employees and retirees whose pension benefits would otherwise have been reduced.
Earlier this week, the court approved Hawker Beechcraft’s motion to retain JPMorgan and Credit Suisse Securities to act as joint lead arrangers and bookrunners to structure, arrange and syndicate $600 million in exit financing for the post-bankruptcy company, Beechcraft Corp.