More details about Hawker Beechcraft’s aborted deal with a Chinese company were revealed in the company’s latest bankruptcy filing this week.
According the filing, Hawker Beechcraft’s debtors and its investment banker, Weinberg Partners, developed a list of more than 35 potential buyers, then contacted 15 of them based on their fit, financial capability and knowledge. Three were domestic and 12 were international parties.
Ultimately, the field narrowed to six interested parties. Superior Aircraft Beijing emerged with the better offer and the two parties entered an exclusivity agreement. Superior is 40 percent owned by Beijing E-Town International Investment Development Corp., a company controlled by the municipal government of the city of Beijing, China.
At several points in the process, Hawker Beechcraft debtors met with Beijing representatives, including the vice mayor of Beijing in charge of industrial development. They were assured that the city of Beijing fully supported Superior’s proposal.
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In mid-September, the company’s debtors and Superior agreed on a final form of a plan and other agreements.
But in the days following, Superior said that Beijing E-Town had not yet approved the plan and the related agreements and that it had engaged its own advisory team in China to review those agreements. Beijing E-Town also said that Superior was not authorized to sign the agreements.
The vice mayor of Beijing invited representatives of Hawker Beechcraft, the debtors and senior secured lenders to Beijing to meet with the Chinese advisers to Beijing E-Town. During the meetings, the Chinese advisers insisted on modifications to the agreement that were “fundamentally inconsistent with the Superior proposal” or the September updates to them.
After two days of intensive meetings, which ended Oct. 11, the group returned to the U.S. and concluded that the negotiations had reached an impasse, the filing said.
That’s when Hawker Beechcraft decided to move with plans for a stand-alone organization, the filing said.