WICHITA, Kan., May 4 (UPI) -- Aircraft manufacturer Hawker Beechcraft, with some of its subsidiaries, has filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code.
The filings, in the U.S. Bankruptcy Court for the Southern District of New York, were made Thursday as the company reached agreement with "a significant number" of its senior secured lenders and bondholders on a financial restructuring that will help eliminate $2.5 billion in debt.
"We are pleased to have reached an agreement with our largest lenders and bondholders on a solution to stabilize and improve our capital structure," Hawker Beechcraft Chief Executive Officer Robert S. Miller said. "In the last three years, the company has made aggressive transformational changes in all operational functions, and today's announcement represents the next step forward.
"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."
As part of the prearranged financial restructuring, Hawker Beechcraft obtained a commitment for $400 million in Debtor-in-Possession financing to continue paying employees, suppliers, vendors and others in the normal course of business, which it will continue. Included will be Department of Defense acquisition and maintenance contracts and agreements with international air forces.