Hawker Beechcraft says talks with Chinese suitor fail

WICHITA, Kan., Thu Oct 18, 2012 – Aircraft maker Hawker Beechcraft Inc, owned by Goldman Sachs and Onex Corp., said it intends to emerge from bankruptcy as a standalone company after talks to sell itself to Chinese aerospace firm Superior Aviation Beijing Co failed.

The maker of business jets, general aviation turboprops and military aircraft, filed for bankruptcy protection in May, unable to support a $2.5 billion debt load.

Hawker said in July it was in exclusive talks with the little-known Chinese firm over the sale of the company for $1.79 billion.

The companies could not agree on the terms of a plan sponsorship agreement, Hawker said on Thursday.

The company that would emerge from bankruptcy, to be renamed Beechcraft Corp, would focus on turboprop, piston, special mission and trainer/attack aircraft, Hawker said.

The company said it was evaluating strategic options with creditors for its Hawker product lines, including the closure of its entire jet business, if it does not get a satisfactory bid.

Hawker, which will file an amended reorganization plan, said general unsecured claims will be canceled and holders will receive equity in the reorganized company.