Emerging from Bankruptcy

Emerging from Bankruptcy

Hawker Beechcraft has emerged as Beechcraft Corp. does not include business jets, and only a fraction of the debt that brought Hawker Beechcraft to bankruptcy.

February 21, 2013
Manufacturing Group
Assembly Industry News

According to an article in the Wichita Eagle, the exit from bankruptcy comes a little more than two weeks after a New York judge gave final approval to the company’s reorganization plan. About 90% of Beechcraft’s owners are financial institutions that were its secured creditors during the bankruptcy.

They swapped the money owed them for an equity stake in Beechcraft. Onex Partners and Goldman Sachs’ GS Capital Partners, the pre-bankruptcy majority owners of Hawker Beechcraft, have “a very, very small percentage of equity” in the new company, Boisture says.

The Pension Benefit Guaranty Corp., the federal government’s pension insurer, is among the smaller creditors that account for the other 10% ownership stake in Beechcraft.

It also has a new board of directors. Besides Boisture, the other directors are Robert “Bob” Johnson, who will be the non-executive chairman; Gen. Donald G. “Don” Cook; Gene Davis; Ralph Heath; David Tolley; Gideon Argov; Mark Ronald; and Paul Fulchino.

Robert “Steve” Miller, who was CEO of Hawker Beechcraft, becomes a senior adviser to the board. Boisture was CEO of the company until its board of directors brought in Miller, a restructuring specialist, about a year ago.

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