Industry News

Hawker Beechcraft files Chapter 11


Hawker files Chapter 11

Hawker Beechcraft has reached an agreement with a significant number of its senior secured lenders and senior bondholders on the terms of a financial restructuring plan that will strengthen the company for the future and eliminate approximately $2.5 billion in debt and approximately $125 million of annual cash interest expense. It and certain of its subsidiaries have filed voluntary petitions under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York. The terms of the prearranged restructuring agreement will take effect when the company’s reorganization plan is confirmed by the Court and the Chapter 11 case is concluded. As part of the prearranged restructuring, Hawker Beechcraft obtained a commitment for $400 million in Debtor-in-Possession (DIP) financing, which will enable it to continue paying employees, suppliers, vendors, and others in the normal course of business. The company will comply with all Department of Defense acquisition and maintenance contracts, as well as agreements with international air forces including, but not limited to, the recently announced sale of T-6C+ trainer aircraft to Mexico. It is also committed to moving forward with its bid to provide the U.S. Air Force with the AT-6 in support of the Light Air Support contract. 

New training technology

The U.S. Air Force awarded Lockheed Martin (NYSE: LMT) a $156 million contract to provide new training devices to accommodate the growing pipeline of C-130J aircrews and maintainers. Lockheed Martin will develop 24 new training devices and provide program management and engineering services under the U.S. Air Force's C-130J Maintenance and Aircrew Training System II, referred to as JMATS II. The devices include weapons systems, enhanced integrated cockpit systems, loadmaster fuselage and loadmaster part-task trainers along with enhanced cargo handling system training aids. Lockheed Martin has managed the C-130J Maintenance and Aircrew Training System since 2000 to provide a comprehensive range of training devices and support services, including aircrew and maintenance personnel instruction, program operations and engineering services. The work will be managed at Lockheed Martin's Marietta, GA, and Orlando, FL, businesses.

Gama expands U.S. base

Gama has been intensively building the infrastructure for this effort since 2009 with the creation of three separate FAA and EASA approved Part 145 Certified Repair Stations located in Bridgeport, CT (BDR), Teterboro, NJ (TEB), and West Palm Beach, FL (PBI). Each of the repair stations has expansive authorizations to perform base and line maintenance on most models of Gulfstream, Falcon, Bombardier, Cessna and Hawker aircraft, as well as all of the associated powerplants. Gama is focusing its growth initially at the West Palm Beach site, with the creation of a number of new technicians (engineering) jobs to service the increasing demand from aircraft operators in search of a ‘concierge’ level service.

Cirrus jet is back

Almost five years after starting work on a prototype, the Duluth-based company said Tuesday it has landed financing to finish developing the new plane. Designed for the personal aircraft market, it's an integral part of a strategy to expand Cirrus' current product line of piston-engine aircraft. The funds from China Aviation Industry General Aircraft Co. (CAIGA) will be used for further testing and to build tooling needed to manufacture the new plane. Dale Klapmeier says the new jet could generate more than 100 jobs in Duluth, where production is expected to begin in 2015. He says the company already has added engineers and technicians to finish work on the plane, called the Vision SF 50.

Aerostar to double MRO capacity

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