Hawker Beechcraft files for bankruptcy protection - 13 WTHR Indianapolis

Aircraft maker Hawker Beechcraft has filed for bankruptcy protection after reaching agreement with the majority of its secured lenders and bondholders on a plan to restructure its massive debt.

Hawker Beechcraft, which is based in Wichita, Kan., said in a statement that it filed a voluntary petition for Chapter 11 bankruptcy protection to expedite the prearranged restructuring of the company and some of its subsidiaries

Under the terms of its restructuring plan, about $2.5 billion in debt and almost $125 million in annual cash interest expenses would be eliminated. The company also says it has won a commitment for $400 million in financing that will allow it to continue paying employees, vendors and others. It promises that all orders will be fulfilled and service to customers will be uninterrupted.

The company employs some 7,400 people, with roughly 4,700 working at its Wichita facility. It also has factories in Little Rock, Ark., Britain and Mexico, as well as more than 100 service centers worldwide.

It has struggled with demand for its military planes and business jets over the past few years.

Hawker Beechcraft can trace its Kansas roots to Beech Aircraft Corp. which began making aircraft in the 1930s.

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