Hawker Beechcraft will seek approval from a bankruptcy judge to emerge from Chapter 11 bankruptcy on Jan. 31, the company said Thursday.
Stuart Bernstein, the federal bankruptcy judge in New York, indicated during a hearing Thursday that he would approve the company’s disclosure statement, which outlines its plan of reorganization, once the company makes some revisions to the statement.
During the hearing, Hawker Beechcraft agreed to make the revisions, which are mostly technical in nature, company officials said.
Once the court reviews the revised order and issues its final approval of the adequacy of its disclosure statement, the company will begin soliciting approval of its reorganization plan from its creditors.
The plan has a lot of support, Hawker Beechcraft officials said. Holders of the majority of its obligations have already committed to support it, according to the company.
Creditors will complete their voting on the plan by Jan. 22.
In the hearing, the judge also approved a sale of more than 400,000 square feet of Hawker Beechcraft’s land along Kellogg and Webb Road for $2.9 million.
The sale would be made to the city of Wichita and will not include any buildings. The property is needed for a widening project along Kellogg.
Hawker Beechcraft has told the court that it thought the price was fair. In addition, company officials told the court, the city could start condemnation proceedings and take the land through eminent domain without a deal.
Hawker Beechcraft filed for Chapter 11 bankruptcy protection May 3.
Under its reorganization plan, it will emerge from bankruptcy as a smaller, standalone company, called simply Beechcraft Corp.
If approved by the judge, the company would concentrate on its King Air, Baron and Bonanza products and its defense and aftermarket businesses.
It would exit the corporate aircraft business.
The disclosure statement to be approved also outlines voting deadlines and other dates, procedures for voting and for filing objections to the plan, among other items.
A hearing scheduled for Dec. 11 will consider whether the company may reject aircraft warranty and support obligations for its Hawker 400 and Premier aircraft lines, whether it can shorten the time period to sell the remaining inventory of Hawker 4000 business jets and other items.