Judge OKs Hawker Beechcraft reorganization plan
WICHITA, Kan. (AP) — A federal judge gave the final nod Friday to Hawker Beechcraft's reorganization plan, clearing the way for the plane-maker to exit bankruptcy later this month.
Bankruptcy Judge Stuart Bernstein ruled Friday that the reorganization plan complied with the requirements of the bankruptcy code, finding the company proposed the plan in good faith to maximize the value of the estate and carry out the reorganization. The judge also said the plan satisfied the "best interest of creditors" test required under the law.
The 39-page ruling comes one day after a confirmation hearing in New York in which Bernstein made clear that he was close to signing off on a reorganization plan that will preserve thousands of jobs.
"Today's ruling marks the final significant step in the restructuring process," Robert "Steve" Miller, CEO of Hawker Beechcraft Inc., said in a news release. "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."
The slimmed-down company will be renamed Beechcraft Corp. and will shed the struggling business jet operations. It will focus on more profitable turboprop, piston, special mission and military aircraft, as well as its parts, maintenance, repairs and refurbishment business.
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