Bankruptcy For Hawker Beechcraft

Hawker Beechcraft Thursday announced that it has filed for Chapter 11 bankruptcy protection, having entered agreements to eliminate $2.5 billion in debt and securing financing that will allow it to pay its employees, for now. Last year, Hawker lost over $600 million, but company officials remain publicly optimistic about the viability of the company. “Restructuring our balance sheet and recapitalizing the company in partnership with our debt holders will dramatically improve Hawker Beechcraft’s ability to compete in a rapidly changing environment,” CEO Robert Miller said in a statement. Restructuring won’t just impact Hawker, which last week announced 350 layoffs, but will also impact suppliers. The company says it will continue to operate “in the normal course of business” and fill all orders for available products.

via Bankruptcy For Hawker Beechcraft.

I dunno about you, but to me, this news makes the Super Tucano look better all the time.

 

5 thoughts on “Bankruptcy For Hawker Beechcraft”

  1. $2.5 billion in debt? Looks like they were depending on project cost overruns on that light attack aircraft contract. You’re right – the Super Tucano does look better all the time.

    1. No, $2.5 billion in debt written off. The total number is almost certainly much higher.

      This is probably the reason why the Super Tucano won the competition, and why the award was so poorly explained. The Air Force didn’t want to put its eggs in a rotten basket, but they also didn’t want to push the company over the edge by saying its financials were crap.

  2. Good! Send the work to where I live. Jacksonville has gone way ouf of their way to help get this contract here. And it goes without saying that the economic impact will be terrific for the local economy.

  3. The T-6/PC-7 is not ready for LAARA. There is significant engineering work to be done to the aircraft, and that would require testing and further mods to make it ready. ST is ready now, not 5 years, or more, down the road.

    Jeff may be right about the financial thing as well. It also seems that almost any acquisition competition is challenged these days. I can understand to a point, as there is less and less coming down the defense acquisition pipeline. In about 12-18 months, at the outside, things are going to be exceedingly bad for the defense industry.

  4. Well, here is another chapter in American history where a large company will simply wipe out a small veteran owned business because they get caught up in the chapter 11. Twenty Eight years in business and now our existence is questionable because the US Court system is allowing Hawker to simply say “See Ya” to small businesses that entrust companies like Hawker to do the right thing. I get the whole “The needs of the many far outweigh the needs of the few” I am a Vietnam Era Veteran who build my business on sweat equity and the one thing that never crosses my mind is “Let someone else pay for my mistakes”. How can our court system here in the US allow a small business like mine to be in a position where we have all worked so hard and pay taxes to just say, Oh it is OK for you Hawker big business to simply never have to pay back these hard working US Veterans who have put their lives and savings to build a business and work 15 hours a day for most of the 28 years we have been around.
    How does this make sense, please someone tell me.

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