After four months of intense negotiation, a deal for the sale of Hawker Beechcraft to Superior Aviation Beijing collapsed October 18 with an announcement by HBC that the parties could not come to terms and it would proceed with the stand-alone plan of reorganization.
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.
A 12-day visit to China by a trade delegation from Wichita got off to a somewhat rocky start on Sunday when a scheduled meeting with Hawker Beechcraft suitor Superior Aviation Beijing was cancelled abruptly due to “sensitivity of the ongoing negotiations.” Superior Aviation submitted a bid in July to purchase bankrupt Hawker Beechcraft for $1.79 billion but an exclusivity period for negotiations granted by the court expired on September 1.
A business delegation from Wichita, headed by Mayor Carl Brewer, plans an extensive trip to the People’s Republic of China, and the possible sale of Hawker Beechcraft to Superior Aviation Beijing is likely to be a subject of discussions there. While examining business relationships and renewal of the sister-city relationship with Kaifeng, Brewer said he expects to meet with Superior Aviation chairman Cheng Shenzong on Sunday.
At press time, Hawker Beechcraft and potential buyer Superior Aviation Beijing were still radio silent some three weeks after the September 1 deadline for exclusive negotiations between the two companies ended. The passing of the exclusive negotiations deadline allows other interested parties to submit their own bids and enter into negotiations. Hawker Beechcraft filed for bankruptcy on May 3 and had been moving forward on restructuring when it was announced on July 17 that Superior Aviation had reached an “exclusivity agreement” to purchase HBC for $1.79 billion.
Hawker Beechcraft Global Customer Support (GCS) has opened its newest company-owned factory service center at the Aeropuerto Internacional del Norte in Monterrey, Mexico.
“Our Monterrey facility offers the first dedicated paint facility in Mexico for general aviation and is a great option for owners looking to update and refurbish their aircraft. With this newest location, HBS hangar space now surpasses 600,000 square feet worldwide,” said Christi Tannahill, Hawker Beechcraft senior vice president, Global Customer Support.
Hawker Beechcraft, which is in the process of restructuring under U.S. Chapter 11 bankruptcy protection, posted a $33.8 million net loss on sales totaling $149.9 million last month. In documents filed with the U.S. Bankruptcy Court in New York earlier this week, the company reported spending $1.5 million on restructuring costs, $5.4 million on reorganization items and $8.8 million on research and development.
Hawker Beechcraft Global Customer Support celebrated the grand opening of its newest service center at the Aeropuerto Internacional del Norte in Monterrey, Mexico, yesterday. Besides maintenance, repair and modification of airframes, powerplants and avionics systems, the Mexican Dirección General de Aeronáutica Civil-certified Hawker Beechcraft Services facility also offers interior modification and exterior paint. This is the second HBS facility opened in Mexico.
Hawker Beechcraft Corp (HBC) says that its Chapter 11 bankruptcy protection and a pending acquisition by China’s Superior Aviation are not affecting the attitudes of customers and potential customers towards its products, which it believes are ideally suited to the Russian market.
Most new jet programs are moving right along, although some are taxiing to the certification line faster than others. When the elusive global economic recovery arrives, there will be no shortage of new business jets to greet it. However, the flight path to new frontiers of speed, efficiency and convenience has not been an uninterrupted ascent.