Hawker Beechcraft received federal bankruptcy court approval on Friday to continue operating during the reorganization process that follows the Wichita OEM’s filing for protection under Chapter 11 the previous day. The court decision will allow HBC to continue paying employees and vendors subsequent to the May 3 bankruptcy filing by allowing it access to $400 million in debtor-in-possession financing that was part of a pre-arranged restructuring.
Hawker Beechcraft announced at 3:30 p.m. EST today that it has reached an agreement with a “significant number” of its senior secured lenders and senior bondholders on the terms of a financial restructuring plan that will “strengthen the company for the future and eliminate approximately $2.5 billion in debt and approximately $125 million of annual cash interest expense.” To move this process forward, the Wichita-based OEM and certain of its subsidiaries today filed voluntary petitions under the Chapter 11 bankruptcy code.
The Teamsters union announced in late May that its pilot members from Gulfstream International Airlines agreed to a new five-year labor contract with management. According to a union statement, the new contract provides a “significant increase” in the ability of each pilot to modify his or her own schedule to accommodate personal needs.
Gulfstream International Group, the parent company of Fort Lauderdale, Fla.-based Gulfstream International Airlines, entered Chapter 11 bankruptcy protection last month in an effort to restructure its debt and secure long-term financing. Gulfstream said it has arranged for up to $5 million in debtor-in-possession (DIP) financing from Chicago-based Victory Park Capital Advisors and that it anticipates no effect on its flight schedules.
Emivest Aerospace’s Chapter 11 bankruptcy reorganization filing on October 20 revealed that the company has until January 14 to find a buyer or could face Chapter 7 liquidation. Any prospective buyer of the manufacturer of the SJ30 light jet would have until February 4 to close the deal.
The federal court judge presiding over VisionAire’s Chapter 11 bankruptcy and reorganization apparently found sufficient merit in one or both investment offers the company presented in court on January 9, one a memorandum of agreement and the other a letter of intent, that he granted a continuance until January 21.