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Hawker files for bankruptcy protection

PUBLISHED: 17:53 04 May 2012 | UPDATED: 14:13 10 October 2012

Aircraft manufacturer Hawker Beechcraft has announced that it has filed for Chapter 11 bankruptcy protection.

Aircraft manufacturer Hawker Beechcraft has announced that it has filed for Chapter 11 bankruptcy protection.

The company has entered agreements to eliminate debts of $2.5 million and secure the financing needed to pay its employees.

It lost $600 million during 2011, and last week it was announced that 350 staff are to be laid off.

However, officials are remaining optimistic. Chief executive officer Robert Miller said in a statement:

"Restructuring our balance sheet and recapitalising the company in partnership with our debt holders will dramatically improve Hawker Beechcraft's ability to compete in a rapidly changing environment."

Hawker has also said that it will continue to operate "in the normal course of business" and fill all orders for available products. Additionally, it is set to continue with a bid to win a Light Air Support contract from the U.S. Air Force.

The company says that more than two-thirds of its band and senior bond debt holders have given support for its prearranged restructuring plan.

If Hawker’s reorganisation is confirmed by the court and the plan is consummated then equity ownership in the company will be transferred to its debt holders.



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