Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Bankruptcy Judge Approves Hawker Beechcraft Chapter 11 Reorganization Plan
Author: Joel R. Glucksman
Date: February 15, 2013
Key Contacts
Back
Kansas-based aircraft manufacturer Hawker Beechcraft will be permitted to move forward with its Chapter 11 reorganization plan, a U.S. Bankruptcy Court has said.
After reviewing the company’s Chapter 11 Joint Plan of Reorganization and hearing no major complaints from creditors, Judge Stuart Bernstein said that he saw no issues with the plan, which would allow the manufacturer to emerge from protection under bankruptcy law in February. The company filed for Chapter 11 protection last May as a result of declining sales and activity in the business jet market.
As part of its reorganization plan, the company will change its name to Beechcraft Corp. In addition, the plan enables the company to reduce costs by having the Pension Benefit Guarantee Corp. take over two of its retirement programs, according to The Associated Press. The labor agreements will enable the company to continue employing thousands of workers.
The terms of the reorganization plan also allow for secured bank debt, unsecured bond debt, and certain unsecured claims to be canceled so long as creditors receive equity in the new company, the AP reports. Following its exit from bankruptcy, the company will focus its efforts on turboprop, piston, and special mission and trainer/attack aircraft, which are expected to be more profitable.
“Today’s ruling marks the final significant step in the restructuring process,” said Hawker Beechcraft CEO Robert Miller, according to United Press International. “Throughout this process, we have been guided by the goal of emerging in a strong operational and financial position, with an enhanced ability to compete well into the future. Our recapitalization and dramatically reduced debt load will allow us to do exactly that.”
Hawker Beechcraft obtained $600 million in exit financing from J.P. Morgan Chase and Credit Suisse. In addition, a new board of directors will be formed once the company formally emerges from bankruptcy proceedings.
- Practices: Bankruptcy & Creditors' Rights
- Locations: Red Bank, NJ, New York City, Washington, D.C., Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
How Understanding Bankruptcy Trends Can Benefit Your Business
The bankruptcy legal landscape presents both challenges and opportunities for businesses navigating financial distress. Understanding current bankruptcy trends can help businesses make more informed and strategic decisions. Corporate Bankruptcy Filings Trending Upwards Bankruptcy filings continued to trend upwards in 2024. According to statistics released by the Administrative Office of the U.S. Courts, personal and business […]
Author: Brian D. Spector
SEC Takes Actions Against Issuers for Failure to File Form D
In December, the U.S. Securities and Exchange Commission (SEC) announced charges against two privately held companies for failing to file a Form D notice, which is generally utilized for exempt securities offerings. Here, the SEC’s enforcement sends a strong message: compliance with regulatory requirements is not optional and failure to comply can have significant consequences. […]
Author: Kenneth C. Oh
Redefining Labor Relations: NLRB's Pivot from Abruzzo’s Memoranda
On February 14, 2025, the Office of General Counsel (OGC) of the National Labor Relations Board (NLRB) under Acting General Counsel William B. Cowen issued Memorandum 25-05, “New Process for More Efficient, Effective, Accessible and Transparent Case handling.” The Memorandum rescinds nearly all of the Memoranda issued by his direct predecessor, Jennifer Abruzzo, setting the […]
Author: Matthew F. Mimnaugh
What Are FIRPTA Withholding Requirements?
If you purchase real property from a foreign person or entity, you may be required to withhold taxes from your payment to the seller under the Foreign Investment in Real Property Tax Act (FIRPTA). The federal tax law is designed to ensure that foreign sellers pay any applicable capital gains tax on profits realized from […]
Author: Jesse M. Dimitro
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Author: Jesse M. Dimitro
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Author: Jesse M. Dimitro
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.