Hawker Beechcraft announced at 3:30 p.m. EDT 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.

According to Hawker Beechcraft, the terms of the pre-arranged restructuring agreement will take effect when the company’s reorganization plan is confirmed by the U.S. Bankruptcy Court for the Southern District of New York and the Chapter 11 case is concluded. As part of the pre-arranged restructuring, Hawker Beechcraft obtained a commitment for $400 million in debtor-in-possession financing that will enable it to continue paying employees, suppliers, vendors and others in the normal course of business.

Meanwhile, the company said it continues to operate normally and serve its customers around the world. “We are pleased to have reached an agreement with our largest lenders and bondholders on a solution to stabilize and improve our capital structure,” said CEO Robert Miller. And he added, “Restructuring our balance sheet and recapitalizing the company in partnership with our debt holders will dramatically improve Hawker Beechcraft’s ability to compete in a rapidly changing environment.”