Letter to our Customers
May 3, 2012
Dear Valued Customer,
In a positive development for Hawker Beechcraft, we announced today that we have reached an agreement with the significant majority of our largest debtholders on the terms of a comprehensive financial restructuring, including the elimination of most of the company’s debt and interest expenses. This is the next step toward putting Hawker Beechcraft on firm financial footing and strengthening the company for the future.
To implement the terms of this agreement as quickly and efficiently as possible, we have filed voluntary petitions under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York, and we obtained $400 million in financing to to fund our operations during this process. You can find additional details regarding the announcement in the news release
we issued today. As you may know, many U.S. companies have utilized Chapter 11 to implement financial restructurings. Chapter 11 of the U.S. Bankruptcy Code allows a company to continue operating its business and managing its assets in much the same way it did prior to filing its petition.
We want to reiterate that this process will not impact our ability to meet our ongoing commitments to you. Upon receiving expected court approval in the day or two of certain motions, deposits and progress payments will be secure, and all customer orders for available products will be fulfilled. We expect to receive court approval to honor warranty claims. Our commitment to providing the best products and service in the industry remains unchanged.
By reaching agreement with the majority of our key creditors in advance of the filing, we anticipate that this process will be concluded by the end of 2012 and that the company will emerge as a strong and healthy business.
This financial restructuring represents the next step forward in our efforts to transform Hawker Beechcraft. 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. Most importantly, it will allow our employees to continue manufacturing the best airplanes and providing you with first-class service and support.
As we progress through this process, we are committed to keeping you informed and providing you with appropriate updates. We value your business and look forward to continuing a long and mutually beneficial relationship.
|Steve Miller |
Hawker Beechcraft, Inc.
Hawker Beechcraft Corporation