Wichita, Kan.-based business-jet manufacturer Hawker Beechcraft Corp. is "readying a bankruptcy filing," according to an article in Wednesday's New York Times.
"A Hawker bankruptcy would be put an end to a 2007 private-equity deal that was troubled almost from the start," assert Michael De La Merced and Peter Lattman, the authors of the New York Times piece. "The company was formed when Goldman and Onex , the largest private-equity firm in Canada, bought Raytheon’s private jet unit for $3.3 billion, hoping to seize on the fervor for private jets.
"Hawker hit rough times soon afterward, as a recession wiped out many discretionary expenditures like private jets. The company laid off about 2,500 employees, and lost billions of dollars as customers like NetJets canceled orders for new aircraft."
According to the New York Times article, Hawker says it has obtained obtained $120 million in additional financing to buy some extra time to repair its balance sheet.
"In exchange, a majority of the company’s debt holders agreed to defer some interest payments and grant relief from loan covenants," the article says.