Beechcraft Emerges from Chapter 11 a Stronger Global Company

         Beechcraft Emerges from Chapter 11 a Stronger Global Company

Company formally secures long-term financing, ends bankruptcy process

PR Newswire

WICHITA, Kan., Feb. 19, 2013

WICHITA, Kan., Feb. 19, 2013 /PRNewswire/ --Beechcraft, formerly Hawker
Beechcraft, announced today it has formally emerged from the Chapter 11
process as a new company well-positioned to compete vigorously in the
worldwide business aviation, special mission, trainer and light attack
markets.

The company's Joint Plan of Reorganization (Plan) was approved by the U.S.
Bankruptcy Court for the Southern District of New York on Feb. 1, 2013, and
became effective on Feb. 15, 2013. Beechcraft exits the restructuring process
with a dramatically reduced debt load, a stable, restructured balance sheet
and the support of a well-capitalized shareholder base.

"Today marks the rebirth of an 80-year-old American aircraft manufacturing
business with a globally recognized brand. Beechcraft has emerged from this
process a stronger company with both financial and operational strength and
stability," said Bill Boisture, Chief Executive Officer of Beechcraft. "We
have a strong line of versatile and globally renowned products like the King
Air turboprop and the T-6 military trainer aircraft, and the largest global
customer support network in the industry. Our highly skilled and dedicated
work force is focused on building aircraft of exceptional quality and
reliability. With these elements as our foundation for the future, we will
compete worldwide and we will win.

"I would like to thank our employees for their hard work and focus, and our
union partner, key creditors, elected officials, suppliers and customers for
their strong support throughout this process," Boisture added.

Beechcraft's product portfolio includes the King Air family of the 350i, 250
and C90GTx. The worldwide fleet of more than 7,000 King Air turboprops serves
a wide variety of missions and has amassed more than 50 million flight hours
while operating in 115 countries around the world. Its piston-engine Bonanza
G36 and Baron G58 twin continue to represent the pinnacle of high-performance,
six passenger capability for their class. A global fleet of nearly 25,000
Baron and Bonanza aircraft also serve as an entry level platform for the King
Air line. The company's defense products include the proven T-6 military
trainer that touts a worldwide fleet of nearly 800 aircraft and more than 2.1
million flight hours, along with the newly introduced multi-role AT-6 for the
Light Attack mission.

The company's Global Customer Support (GCS) team and its factory-owned service
center network, Hawker Beechcraft Services, will continue supporting all
Hawker and Beechcraft products. The network includes 10 facilities in the
United States, Mexico and the United Kingdom, along with more than 90
authorized service centers around the world. The GCS team is dedicated to
improving the value of Hawker and Beechcraft aircraft by employing products
and services to simplify ownership, reduce operating cost and increase resale
value. Two examples of this include the factory designed, engineered and
supported Hawker 400XPR and Hawker 800XPR jet programs in which the company is
offering owners the opportunity to upgrade engines, avionics and aerodynamics
on their current aircraft.

Corporate Governance, Financing and Ownership

Robert (Bob) Johnson is the Chairman of the company's new board. Its other
members are: General Donald G. 'Don' Cook, Gene Davis, Ralph Heath, David
Tolley, Gideon Argov, Mark Ronald, Paul Fulchino and Bill Boisture. The
company's leadership team remains in place, providing continuity and stability
in running the business.

As previously announced, Beechcraft secured $600 million in permanent
financing, including a $425 million term loan facility and a $175 million
revolving facility. A portion of the term loan facility was used to repay the
company's debtor-in-possession credit facility and to satisfy certain
settlement and cure costs payable under the Plan. The remainder, together with
the revolving facility, is funding ongoing operations. J.P. Morgan Securities
LLC and Credit Suisse Securities (USA) LLC acted as joint lead arrangers and
joint bookrunners to structure, arrange and syndicate the financing.

As detailed in the Plan, effective on Feb. 15, 2013, pre-petition secured bank
debt, unsecured bond debt, and certain general unsecured claims have been
canceled and holders of such claims received equity in the reorganized company
in the percentages negotiated by the major creditor groups at the time the
company commenced its Chapter 11 proceedings.

The company's legal representative is Kirkland & Ellis LLP; its financial
advisor is Perella Weinberg Partners LP; and its restructuring advisor is
Alvarez & Marsal. The Ad Hoc Committee of Senior Secured Lenders' legal
representative is Wachtell, Lipton, Rosen & Katz. The Ad Hoc Committee of
Senior Noteholders' legal representive is Milbank, Tweed, Hadley & McCloy LLP
and its financial advisor is Blackstone. The Unsecured Creditors Committee's
legal representative is Akin Gump Strauss Hauer & Feld LLP and its financial
advisor is FTI Consulting, Inc.

About Beechcraft

Beechcraft designs, builds and supports versatile and globally renowned
aircraft, including the King Air turboprops, piston-engine Baron and Bonanza,
and the T-6 trainer and AT-6 light attack military aircraft. Its 5,400 highly
skilled employees are focused on continuously improving the company's products
and services which are sold to individuals, businesses and governments
worldwide. In business since 1932, Beechcraft has built more than 54,000
aircraft and more than 36,000 continue flying today. It leads the industry
with a global network of more than 90 factory-owned and authorized service
centers. The company's headquarters and major manufacturing facilities are
located in Wichita, Kan. For more information, visit beechcraft.com or follow
us on Twitter @Beechcraft.

Media contact:
Nicole Alexander
+1.316.676.3212
Nicole_Alexander@beechcraft.com

SOURCE Beechcraft
 
Press spacebar to pause and continue. Press esc to stop.