PE-backed Hawker Beechcraft sees China sale collapse

US firm Hawker Beechcraft, which is owned by the private equity units of Goldman Sachs Group and Onex Corporation, filed for bankruptcy protection in May when it was unable to support a $2.5 billion debt load.

In a statement the company, one of the world's biggest makers of private aircraft, said it intended to emerge from Chapter 11 bankruptcy protection as a stand alone entity.

"Despite our best efforts, the proposed transaction with Superior could not be completed on terms acceptable to the company," said CEO Steve Miller. "We are disappointed that the transaction did not come to fruition, but we protected ourselves by obtaining a $50 million deposit that is now fully non-refundable and property of the company."

News of the potential deal with Superior Aviation first came about in July when company was to be sold for a reported $1.79 billion.

Hawker Beechcraft had undertaken to separate out its military aircraft business from its other units if Superior, which is 40%-owned by the Beijing government, took over. The company now intends to rename itself Beechcraft Corporation and focus on its most profitable products, which include special mission and trainer/attack aircraft.

The company will consult with creditors during this process and it is likely that the Hawker product lines will be sold or the entire jet engine business closed if no satisfactory bids are received.

 

 

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• Topics
• Greater China
• North America
• Restructuring
• Credit/Special Situations
• Industrials
• Goldman Sachs
• Distress