Hawker Beechcraft Files for Bankruptcy

7 May 2012, 22:22 CDT

Last summer, Beechcraft finally came to an agreement with the union which kept manufacturing in Wichita.  A couple of weeks ago, the company warned of layoffs.  By way of General Aviation News, last week, Hawker Beechcraft filed for bankruptcy.

Financially troubled Hawker Beechcraft filed for Chapter 11 bankruptcy protection Thursday, saying it would emerge from the financial restructuring “a stronger company.”

The struggling plane maker filed the pre-arranged restructuring agreement with the U.S. Bankruptcy Court in the Southern District of New York.

Operations will continue, and Hawker Beechcraft will continue to pay employees, suppliers, vendors and others in the normal course of business. To fund its operations through the process, Hawker Beechcraft has obtained a commitment for $400 million in “Debtor in Possession” financing

Not a good sign for general aviation, not a good sign for the economy.
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