The U.S. Bankruptcy Court for the Southern District of New York has approved Hawker Beechcraft's motion to enter into exclusive negotiations with Superior Aviation Beijing Co., Ltd. This approval enables Hawker Beechcraft to spend up to 45 days exclusively negotiating with Superior regarding a strategic combination thatsee Superior buy HB for $US 1.79 billion (see news item here).
As part of the deal, Superior will make payments over the next month to sustain Hawker Beechcraft’s jet business. An initial deposit of $25 million is expected before the end of the week and a second $25 million within 30 days. Any definitive agreement reached with Superior would be subject to approval by theUS Committee on Foreign Investment.
By no means does the exclusivity mean the sale of HB to China is a done deal. There will still be a mandatory competitive auction for the assets of Hawker Beechcraft, and several industry analysts believe that Cessna may prepare a bid for the jet business.
Hawker Beechcraft has said that if the deal with Superior does not go ahead, it will seek a solution that will see it emerge as a stand-alone entity. This could very well mean keeping the piston business and selling the jets to Cessna.