(WICHITA, Kan.) — Hawker Beechcraft has filed for Chapter 11 bankruptcy protection.
In a statement, the planemaker said it has reached an agreement with "a significant number of its senior secured lenders and senior bondholders on the terms of a financial restructuring plan."
Hawker Beechcraft said the filing and subsequent restructuring will elminate $2.5 billion in debt and approximately $125 million of annual cash interest expenses.
“We are pleased to have reached an agreement with our largest lenders and bondholders on a solution to stabilize and improve our capital structure," CEO Robert S. Miller said in the statement.
"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 debtholders will dramatically improve Hawker Beechcraft’s ability to compete in a rapidly changing environment.”
The terms of the pre-arranged restructuring agreement will take effect when the company’s reorganization plan is confirmed by the U.S. Bankruptcy Court for the Southern District of New York and the Chapter 11 case is concluded.