Hawker Beechcraft has announced its intention to emerge from Chapter 11 bankruptcy protection as a standalone company after the deal with Chinese suitor Superior Aviation fell through.
Robert S. “Steve” Miller, CEO of Hawker Beechcraft, said the company was no longer chasing a deal with Superior because the two parties failed to reach an agreement.
“We made the decision to proceed with the standalone Plan of Reorganization after determining that, despite our best efforts, the proposed transaction with Superior could not be completed on terms acceptable to the company," he said.
"We are disappointed that the transaction did not come to fruition, but we protected ourselves by obtaining a $50 million deposit from Superior that is now fully non-refundable and property of the company. The go-forward business plan we have developed with our creditors ensures that we will emerge from this process in a strong operational and financial position, with an enhanced ability to compete well into the future.”
Under the new business plan, the company will be renamed Beechcraft Corporation and will concentrate on the prop-driven aircraft including the special mission and military trainers, which were the company's most profitable sectors.
Bill Boisture, Chairman of Hawker Beechcraft Corporation, pointed out the benefits of keeping the prop aircraft.
“Beechcraft Corporation will emerge as the world’s leading designer and manufacturer of turboprop, piston and trainer/attack aircraft with the largest global customer support network in the industry," he said.
"Our business strategy will focus on growing our key existing product lines: high performance single and twin engine piston and turboprop aircraft, uniquely missionized variants for the global special mission market, and multi-role light attack and trainer aircraft systems, as well as the product development opportunities within these segments.”
At the moment, the future of the Hawker jet range is uncertain. The company is in talks with key creditors to evaluate options, which include selling that part of the business, deleting some aircraft from the range, or exiting the jet market completely. In the recent past, both Cessna and Embraer have been touted as potential buyers.