Expert: No need to panic over Hawker's financial situation

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March 29, 2012|By Melody Pettit | KWCH 12 Eyewitness News

(WICHITA, Kan.) — Hawker Beechcraft Inc, the aircraft manufacturer owned by Goldman Sachs Group Inc's private equity arm and Onex Corp, is preparing to file for bankruptcy protection, according to a report by Reuters.

But a Wichita bankruptcy attorney says it actually could be a good thing for the company. Bill Zimmerman says this information is not a reason to panic. He says it could mean the company is working to ensure it can sustain itself for the future.

Many Hawker employees and former employees have questions about what this move means for their jobs and for the pensions.

The Reuters report quotes people familiar with the matter and says Hawker Beechcraft is negotiating a pre-arraigned bankruptcy with its largest lenders.

“That means they are most likely filing chapter 11 to restructure. It's what Chrysler did and is what American Airlines is doing,” said Wichita Bankruptcy Attorney, Bill Zimmerman.

Zimmerman is not involved in the Hawker situation but says it's no reason to panic.
But that doesn't stop employees and former employees from worrying.

One viewer sent us an email which reads:

"This is very disturbing to me and a lot of other former employees. Perhaps one question, which is not addressed and should be is, what happens to the employees’ pension plan?"

Zimmerman says that shouldn't be a problem because pensions are federally insured.

Zimmerman does say there is a provision in the bankruptcy law that allows companies to suggest a re-negotiation of union contracts and that could mean some lay-offs.

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