Hawker Beechcraft Inc., the bankrupt business-jet maker partly owned by Goldman Sachs Group Inc. (GS:US), will be taken over by creditors under an amended restructuring plan after a sale to Superior Aviation Beijing Co. collapsed.
The plan will swap debt for equity and give ownership to creditors, according to court papers. Senior creditors include Centerbridge Partners, Angelo Gordon & Co., Sankaty Advisors, and Capital Research & Management, according to a person familiar with the capital structure who is not authorized to speak on behalf of lenders.
The post-bankruptcy company would focus on planes including civilian turboprops and military trainers. A review of strategic alternatives for the Hawker jet line is under way, and that business may close if no satisfactory bids are received, the company said last week.
“The company will have shedded $2.5 billion of debt during this bankruptcy,” Hawker Beechcraft Chairman Bill Boisture said today in Orlando, Florida. “The primary change in my view will be a very aggressive, focused effort on those most profitable product lines going forward.”
Hawker, owned by Goldman and Onex Corp. (OCX), filed for Chapter 11 protection in May, citing lower demand for private jets after the recession and curbs on U.S. defense spending. A $1.79 billion stalking horse bid by Superior for most of the company collapsed Oct. 18, leaving Wichita, Kansas-based Hawker to pursue a new stand-alone exit plan as the renamed Beechcraft Corp.
The approximately $921.6 million in secured debt outstanding under the senior credit facility will be converted into 81.1 percent of common stock in the reorganized company, the company said in court papers.
Hawker said in the filing that the plan is supported by holders of a “substantial majority” of the debt under the senior credit facility, the holders of a majority in principal amount of senior notes, and the committee representing unsecured creditors.
Beechcraft would concentrate on turboprops, piston-engine planes and special mission and trainer/attack aircraft for military uses, along with its parts, maintenance and repair businesses.
The case is In re Hawker Beechcraft Inc., 12-11873, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
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