Hawker Beechcraft Conducts Pre-NBAA Press Release in Orlando

 Hawker Beechcraft conducted a pre-NBAA press release on Monday morning in Orlando.

Bill Boisture, a chairman of HBC, kicked off the press release, stating that in the midst of HBC’s Chapter 11 bankruptcy filing that the company is “continuing business in the normal course.”

You may recall that on May 3 of this year, HBC filed a chapter 11 bankruptcy.  Chairman Boisture gave more details on the filing, indicating that the filing was prearranged – meaning that all parties – the company, lenders, creditors – all agreed on what the course of the company would be moving forward prior to the actual filing of the bankruptcy.

As we can recall from earlier this month, no agreement could be made between Hawker Beechcraft and Superior Aviation on a buyout.  Boisture attributed some of the lack of agreement to cross cultural barriers such as language, as well as government approval issues – from both nations.  Unable to reach an agreement, Boisture stated that Hawker Beechcraft will emerge as “Beechcraft Corporation” and will be focused solely on their turboprop (KingAir baby!) and piston aircraft. Bids are still being submitted for the jet line at this point.

“We’re moving forward”, says Boisture. The company seems to have a strong sense of direction in where they are headed. Much of this is possibly due to the strong collective of mind in the company’s hierarchy and its affiliated parties. Boisture stated that both times decisions were made involving reorganization of the company, the vote was nearly 100 percent backed by all parties involved, including the unions, in the vote. In regard to the choice to emerge as a standalone company, he says the company decided it was the “best way to move forward.”

The next steps for the company involve a hearing on an amendment to their reorganization agreement filed this morning regarding the jet product lines, set to be held on November 15. Between this hearing and January 22, interested parties who have a stake in the process get to vote on the plan of reorganization of the company, which will be heard on January 31.

Boisture wrapped up his statements with an apology to Hawker Beechcraft’s customers: “We are truly sorry to have disappointed our customers with this decision.”

On a good note, Boisture gave some perspective involving the surrounding conditions of the emerging Beechcraft Corporation. Here’s a recap:

• Owned by well funded parties – 4 major investment firms
  • Most of these firms are already familiar with the company because they have invested in Hawker Beechcraft before
  • During this emergence, the company will shed approximately $2.5 billion in debt
  • Employee benefits are ensured
  • The company will continue to “grow aircraft service and support services worldwide”
  • Beechcraft Corporation will be making “an aggressive focus on most profitable product lines

Shawn Vick, Executive VP Customers, also took the stage to shed more light on future products of Beechcraft Corporation.

Vick stated that in 2013, a 5 year development plan – which has been under development for the past 36 months – will be released to the public. During this period of 5 years, Beechcraft Corporation plans to grow from 6 products to 10 products. Vick says these products will “perfectly compliment the curent KingAir lines” in terms of price and performance. He also stresses that there “is much more going on than the few things I’ve described to you today.”

Vick made a remark in regard to the new ProLine Fusion, stating that it will be available as an after market upgrade for all KingAir aircraft with ProLine 21 systems. These ProLine 21 systems are about to become stock in new KingAir aircraft.

Big Points:

1. Beechcraft will emerge from Chapter 11 in early 2013
2. Shredding approximately $2.5 billion in debt
3. The company has the commitment, experiences, resources, and people to continue moving forward