Friday, April 13, 2012
Hawker-owned subsidiaries Hawker Beechcraft Acquisition Company, LLC and Hawker Beechcraft Notes Company filed their Annual Report on Form 10-K for the 2011 year.
Hawker CEO Steve Miller issued the following statement:
“Today’s filing reflects the combined effect of the prolonged weakness in our market that has continued to affect our business and the heavy debt burden the company has operated under since 2007. Hawker Beechcraft continues to work closely with our lenders to restructure the company’s balance sheet, and to do so as quickly as possible. In the coming weeks, we expect to decide on a path forward for Hawker Beechcraft that will include a plan that will put the company on firm financial footing and better position Hawker Beechcraft for the future. As we move forward with this process, we remain steadfast in our commitment to building, selling and servicing the best airplanes for our civilian and military customers.”
Monday, April 2, 2012
Also on Monday, Standard & Poor’s reported that it believed that Hawker had missed a March 30 interest payment and has lowered Hawker’s credit rating to “SD,” meaning selective default.
In Monday’s SEC filing, Hawker said it has had difficulty recruiting and retaining qualified financial personnel, and that it is having difficulty with an upgraded enterprise resource planning (ERP) system. Both contribute to “material weaknesses” in the company’s internal control over its financial reporting, the filing says.
The filing says Hawker has hired Alvarez & Marsal as business advisers to assist it with the ERP system. It says it has hired additional advisers to help with its restructuring negotiations, and that it has implemented a compensation plan designed to retain and attract qualified accounting and finance personnel.
The company anticipates being able to file its 10-K by April 16, Monday’s filing says.