Bankruptcy

One day after Eyewitness News aired a story about bounced checks for Taco Tico employees, some workers are getting answers. Jacob Taylor, 17, said he had not been paid in full for more than a month. "Every time we got our checks, it was for the full amount," he said. "But it was the same thing. They'd bounce, like we'd try to cash them and they'd come right back. " Taylor was told he could pick-up a cashier's check from his manager's office Thursday. Mohmood Karim, Taco Tico's owner, did not want to go on camera, but Eyewitness News talked to his attorney who is handling the company's bankruptcy.

HAYS, Kan. (AP) - A scaffolding and concrete form manufacturer that once employed 170 people in Hays has filed for Chapter 11 bankruptcy protection. Hays-based A-1 Plank and Scaffold Mfg. has effectively ceased operations pending emergence from bankruptcy. Besides its Hays work force, it also has a plant in Paramount, Calif. Its president, Dwight Allenbaugh, hopes the company can emerge as a "leaner, meaner" but somewhat smaller operation. Allenbaugh says the economy has hurt his business.

The Borders Bookstore at 1715 N. Rock Rd. in Wichita is one of 200 closing as the company files for Chapter 11 bankruptcy protection. According to a list published in the Wall Street Journal, the only other store in Kansas set to close as part of the reorganization is at 700 New Hampshire St. in Lawrence. The store near 21st and Maize in Wichita is not on the list of closing stores. Borders Group filed for bankruptcy after a long struggle to stay afloat. The company will close 30 percent of its stores over the next few weeks.

Wichita Mayor Carl Brewer and Sedgwick County Chairman Tim Norton say they stand behind Hawker Beechcraft and its 4,000 employees. The local leaders held a press conference Thursday to react to Hawker's decision to file for Chapter 11 bankruptcy protection. Norton says Hawker is celebrating 80 years in the community and he expects the company to remain here for another 80 years.  Norton says the county and city are working to understand the situation.  He says they'll continue to help the company but also be good stewards of taxpayer dollars.

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.

Hawker Beechcraft is in the final stages of plans to file for Chapter 11 bankruptcy according to an article in Wednesday's Wall Street Journal . There are reports the filing could happen as soon as Thursday. A spokesperson for the plane-maker declined to comment on the reports. Multiple reports say the plane-maker is in the final stages of preparing a “pre-arranged bankruptcy” and that it will hand ownership over to several hedge funds. According to Wichita-based bankruptcy attorney Susan Saidian, who is not involved in the negotiations with Hawker, this is not bad news for the company.

Some of the ten Taco Tico restaurants closed this week will reopen.  The Kansas Department of Revenue says the Wichita based business Ajax International Group filed for Chapter 11 bankruptcy.  Under the bankruptcy, the company will work to pay back taxes owed to the state. The company owes $434,939 in unpaid sales taxes accumulated between June 2011 and October 2012.  The Department of Revenue seized all bank accounts, on-site cash and other assets at ten restaurants Tuesday.  The state says it made several attempts to recover the money before closing the restaurants.

Hawker Beechcraft has named Robert S. "Steve" Miller as its new CEO, replacing Bill Boisture, who will remain as a chairman. Hawker has been struggling since 2008 when a recession reduced sales and forced thousands of layoffs. Steve Miller has a history of working with troubled companies. He's helped oversee bankruptcies at parts suppliers - Federal Mogul Corporation and Delphi Corporation. He's credited with helping Chrysler rebound in the 1980's after it had to take government loans.

Colorado-based Ultimate Electronics plans to liquidate all 46 of its stores nationwide, according to published reports. The information comes in an email from the company's Chief Executive Officer, and documents filed in a federal bankruptcy court. The bankruptcy judge must approve the company's request before the stores can start the liquidation sales. Ultimate Electronics has one Kansas location on N. Rock Road in Wichita. Ultimate Acquisition Partners LP, Ultimate Electronics parent company, filed for Chapter 11 bankruptcy on Jan. 26. The company says it owes its biggest creditor, GE Capital, $64.8 million.

A bankruptcy court has cleared the way for snack cake maker Hostess to sell its assets. On Monday, the court agreed to proceed with auctions for several Hostess' brands, including Twinkies and Wonder Bread. Real estate and baking equipment is also included in the sale. Hostess and Dolly Madison brands will be sold March 13. Drake and Northwest brand sales will follow two days later. A hearing to approve the successful bidder is scheduled for March 19. The 82-year-old baking company filed for bankruptcy in November after the baker's union crippled operations.

One day after Eyewitness News aired a story about bounced checks for Taco Tico employees, some workers are getting answers. Jacob Taylor, 17, said he had not been paid in full for more than a month. "Every time we got our checks, it was for the full amount," he said. "But it was the same thing. They'd bounce, like we'd try to cash them and they'd come right back. " Taylor was told he could pick-up a cashier's check from his manager's office Thursday. Mohmood Karim, Taco Tico's owner, did not want to go on camera, but Eyewitness News talked to his attorney who is handling the company's bankruptcy.

Some of the ten Taco Tico restaurants closed this week will reopen.  The Kansas Department of Revenue says the Wichita based business Ajax International Group filed for Chapter 11 bankruptcy.  Under the bankruptcy, the company will work to pay back taxes owed to the state. The company owes $434,939 in unpaid sales taxes accumulated between June 2011 and October 2012.  The Department of Revenue seized all bank accounts, on-site cash and other assets at ten restaurants Tuesday.  The state says it made several attempts to recover the money before closing the restaurants.

Hawker Beechcraft is no more, in it's place Beechcraft Corp. The aviation company has a new name, a smaller product line and more importantly, it is out of bankruptcy. There is a new flag flying outside of Beechcraft's corporate headquarters, and soon even more big red B's going up around the plant It took ten months to get this company out of bankruptcy. Now the C.E.O. is focused on building beechcraft's financial future.   "It's an exciting time for me personally and everybody in this company," said Beechcraft C.E.O.

A bankruptcy court has cleared the way for snack cake maker Hostess to sell its assets. On Monday, the court agreed to proceed with auctions for several Hostess' brands, including Twinkies and Wonder Bread. Real estate and baking equipment is also included in the sale. Hostess and Dolly Madison brands will be sold March 13. Drake and Northwest brand sales will follow two days later. A hearing to approve the successful bidder is scheduled for March 19. The 82-year-old baking company filed for bankruptcy in November after the baker's union crippled operations.

A U.S. Bankruptcy Court in Manhattan has approved Hawker Beechcraft's plan for reorganization. The confirmation paves the way for the aviation company to emerge from Chapter 11 in a couple of weeks. Under the reorganization terms, the company will rename itself Beechcraft Corporation. It will focus on turboprop, piston, special mission, trainer and attack aircraft and parts and maintenance. Click here to read the full release from Hawker Beechcraft The judge also signed off on a pension plan agreement for the International Association of Machinists.

A federal bankruptcy judge has preserved pension benefits for hundreds of Hawker Beechcraft employees. According to the International Association of Machinists and Aerospace workers, Judge Stuart Bernstein approved a pension benefit settlement for more than 3,000 members. The union said it also negotiated a new pension plan while "guaranteeing the continuation of an existing 401(k) savings plan and maintaining pension benefits for retired IAM members. " But Hawker's effort to exit bankruptcy was put on hold Thursday after Bernstein refused to approve part of the company's restructuring plan.

Hostess Brands Inc. announced late Tuesday that court-ordered mediation with the Bakery, Confectionary, Tobacco and Grain Millers International Union was unsuccessful. A hearing is scheduled for eleven o'clock EST Wednesday in U.S. Bankruptcy Court for the Southern District of New York. It's expected the court will approve the company's liquidation. On Monday, the bankruptcy judge ordered the mediation. The BCTGM, which represents about 30 percent of Hostess workers, went on strike November 9. Workers are protesting contract changes imposed by the bankruptcy court.

Hawker Beechcraft's request to pay top executives more money is being disputed by the Machinists Union.  The International Association of Machinists and Aerospace Workers filed a formal objection in federal bankruptcy court Wednesday. Last week, Hawker Beechcraft asked the federal bankruptcy court permission to pay its leadership team more money.  The team is made up of eight positions and according to court papers the execs could see bonuses up to 200% of their base salary.

In an 83-page motion filed Friday, Hawker Beechcraft asks the federal bankruptcy court permission to pay its leadership team more money. In the motion is says "The debtors' senior management team will play an indispensable role in the performance of the business over the next few months. " It also says "...individual members of the SLT (senior leadership team) have worked around the clock (sometimes literally), shouldering responsibilities that are well above and beyond their day to day duties outside of chapter 11.” The team is made up of the following positions and according to court papers could see bonuses up to 200% of their base salary: Chairman Executive VP of Operations VP of Human Resources VP of Engineering Executive VP and General Counsel Senior VP of Global Customer Support Chief Financial Officer Executive VP of Customers “In this case it's important to point out that Hawker is still operating, they're in bankruptcy and they're trying to do two distinct important things at the same time,” says Wichita bankruptcy attorney Eric Lomas.

Wichita aviation experts are optimistic that Hawker Beechcraft's sale to a Chinese company will bring an infusion of cash to the Wichita planemaker. Aviation consultant Dave Franson told Eyewitness News Hawker's intent in selling to Superior Aviation of Beijing is to try and minimize the impact that the bankruptcy would have on the product line, Hawker's workers and its customers. “I'm hopeful there will be a minimal impact on the company,” says Franson. “But even when these deals are made, and it's said that nothing will be changed, it's amazing how change does occur over a period of time.” Hawker Beechcraft filed for Chapter 11 bankruptcy in May. Under the terms of the agreement, Superior will buy Hawker for $1.79 billion.