May 3, 2012: Hawker Beechcraft files for Chapter 11 bankruptcy, meaning it intends to restructure and shed much or all of its debt.
Filing its plan in U.S. Bankruptcy Court in the Southern District of New York, the company said it needed to eliminate about $2.5 billion in debt and about $125 million of annual cash interest expense. The filing came five years after Goldman Sachs and Onex Corp. bought Raytheon Aircraft from Raytheon for $3.3 billion.
Officials said they would continue operations, as well as pay employees, suppliers, vendors and others in the normal course of business.
Hawker Beechcraft’s biggest union, the International Association of Machinists and Aerospace Workers, says it opposes the sale to a Chinese company, saying it would transfer valuable commercial and military-related technology to China, compromise national security interests and lead to the loss of skilled high-paying U.S. jobs.